Discounted Cash Flow (DCF) Analysis Levered

U.S. Bancorp (USB)

$45.64

+0.29 (+0.64%)
All numbers are in Millions, Currency in USD
Stock DCF: 114.43 | 45.64 | 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 21,85222,18122,88323,22622,72122,947.9323,177.1323,408.6223,642.4223,878.55
Revenue (%)
Operating Cash Flow 6,47210,5644,8893,7169,8707,253.767,326.217,399.387,473.297,547.93
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----7,253.767,326.217,399.387,473.297,547.93

Weighted Average Cost Of Capital

Share price $ 45.64
Beta 0.980
Diluted Shares Outstanding 1,510
Cost of Debt
Tax Rate 21.67
After-tax Cost of Debt 1.86%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.132
Total Debt 41,718
Total Equity 68,916.40
Total Capital 110,634.40
Debt Weighting 37.71
Equity Weighting 62.29
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 21,85222,18122,88323,22622,72122,947.9323,177.1323,408.6223,642.4223,878.55
Operating Cash Flow 6,47210,5644,8893,7169,8707,253.767,326.217,399.387,473.297,547.93
Capital Expenditure ----------
Free Cash Flow -----7,253.767,326.217,399.387,473.297,547.93
WACC
PV LFCF 6,858.056,548.696,253.285,971.205,701.84
SUM PV LFCF 31,333.07

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.77
Free cash flow (t + 1) 7,698.89
Terminal Value 204,214.49
Present Value of Terminal Value 154,267.35

Intrinsic Value

Enterprise Value 185,600.42
Net Debt 12,813
Equity Value 172,787.42
Shares Outstanding 1,510
Equity Value Per Share 114.43