Discounted Cash Flow (DCF) Analysis Levered

U.S. Bancorp (USB)

$33.38

-0.07 (-0.21%)

All numbers are in Millions, Currency in USD

Stock DCF: 166.81 | 33.38 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	22,521	22,883	23,226	22,721	24,184	24,629.65	25,083.51	25,545.74	26,016.49	26,495.91
Revenue (%)
Operating Cash Flow	10,564	4,889	3,716	9,870	21,119	10,592.63	10,787.83	10,986.62	11,189.08	11,395.26
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	10,592.63	10,787.83	10,986.62	11,189.08	11,395.26

Weighted Average Cost Of Capital

Share price	$ 33.38
Beta	0.999
Diluted Shares Outstanding	1,510
Cost of Debt
Tax Rate	20.22
After-tax Cost of Debt	3.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.151
Total Debt	71,045
Total Equity	50,403.80
Total Capital	121,448.80
Debt Weighting	58.50
Equity Weighting	41.50
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	22,521	22,883	23,226	22,721	24,184	24,629.65	25,083.51	25,545.74	26,016.49	26,495.91
Operating Cash Flow	10,564	4,889	3,716	9,870	21,119	10,592.63	10,787.83	10,986.62	11,189.08	11,395.26
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	10,592.63	10,787.83	10,986.62	11,189.08	11,395.26
WACC
PV LFCF						10,001.54	9,617.45	9,248.11	8,892.96	8,551.44
SUM PV LFCF										46,311.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.91
Free cash flow (t + 1)	11,623.17
Terminal Value	297,267.71
Present Value of Terminal Value	223,081.16

Intrinsic Value

Enterprise Value	269,392.67
Net Debt	17,503
Equity Value	251,889.67
Shares Outstanding	1,510
Equity Value Per Share	166.81