Discounted Cash Flow (DCF) Analysis Levered

United Community Banks, Inc. (UCBI)

$30.57

+0.71 (+2.38%)
All numbers are in Millions, Currency in USD
Stock DCF: 100.74 | 30.57 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 444.25531.71557.67639.36686.51766.48855.76955.451,066.741,191
Revenue (%)
Operating Cash Flow 207.96270.01153.93158.68359.32310.20346.34386.68431.72482.01
Operating Cash Flow (%)
Capital Expenditure -22.18-17.62-20.94-18.46-26.48-28.83-32.19-35.94-40.13-44.80
Capital Expenditure (%)
Free Cash Flow 185.78252.39132.99140.22332.84281.37314.15350.74391.60437.21

Weighted Average Cost Of Capital

Share price $ 30.57
Beta 1.084
Diluted Shares Outstanding 83.25
Cost of Debt
Tax Rate 22.42
After-tax Cost of Debt 9.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.977
Total Debt 247.36
Total Equity 2,544.89
Total Capital 2,792.25
Debt Weighting 8.86
Equity Weighting 91.14
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 444.25531.71557.67639.36686.51766.48855.76955.451,066.741,191
Operating Cash Flow 207.96270.01153.93158.68359.32310.20346.34386.68431.72482.01
Capital Expenditure -22.18-17.62-20.94-18.46-26.48-28.83-32.19-35.94-40.13-44.80
Free Cash Flow 185.78252.39132.99140.22332.84281.37314.15350.74391.60437.21
WACC
PV LFCF 260.29268.83277.66286.77296.18
SUM PV LFCF 1,389.73

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.10
Free cash flow (t + 1) 445.95
Terminal Value 7,310.74
Present Value of Terminal Value 4,952.59

Intrinsic Value

Enterprise Value 6,342.32
Net Debt -2,044.15
Equity Value 8,386.47
Shares Outstanding 83.25
Equity Value Per Share 100.74