Discounted Cash Flow (DCF) Analysis Levered

United Bankshares, Inc. (UBSI)

$34.34

-0.08 (-0.23%)
All numbers are in Millions, Currency in USD
Stock DCF: 119.51 | 34.34 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 732.141,036.751,008.581,031.611,503.091,829.552,226.902,710.563,299.264,015.81
Revenue (%)
Operating Cash Flow 147.69140.45609.54760.8210.23616.87750.85913.931,112.421,354.02
Operating Cash Flow (%)
Capital Expenditure -11.08-19.03-15.38-16.86-24.46-29.77-36.23-44.10-53.68-65.34
Capital Expenditure (%)
Free Cash Flow 136.61121.42594.16743.96-14.22587.11714.62869.821,058.741,288.68

Weighted Average Cost Of Capital

Share price $ 34.34
Beta 1.044
Diluted Shares Outstanding 134.75
Cost of Debt
Tax Rate 21.02
After-tax Cost of Debt 3.95%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.255
Total Debt 2,078.08
Total Equity 4,627.45
Total Capital 6,705.53
Debt Weighting 30.99
Equity Weighting 69.01
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 732.141,036.751,008.581,031.611,503.091,829.552,226.902,710.563,299.264,015.81
Operating Cash Flow 147.69140.45609.54760.8210.23616.87750.85913.931,112.421,354.02
Capital Expenditure -11.08-19.03-15.38-16.86-24.46-29.77-36.23-44.10-53.68-65.34
Free Cash Flow 136.61121.42594.16743.96-14.22587.11714.62869.821,058.741,288.68
WACC
PV LFCF 545.59617.12698.03789.55893.07
SUM PV LFCF 3,543.35

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.61
Free cash flow (t + 1) 1,314.46
Terminal Value 23,430.62
Present Value of Terminal Value 16,237.55

Intrinsic Value

Enterprise Value 19,780.90
Net Debt 3,677.03
Equity Value 16,103.87
Shares Outstanding 134.75
Equity Value Per Share 119.51