Discounted Cash Flow (DCF) Analysis Levered

U.S. Bancorp (USB-PP)

$23.4299

-0.15 (-0.64%)
All numbers are in Millions, Currency in USD
Stock DCF: 51.96 | 23.4299 | 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 $ 23.4,299
Beta 0.980
Diluted Shares Outstanding 3,137.30
Cost of Debt
Tax Rate 21.67
After-tax Cost of Debt 1.86%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.323
Total Debt 41,718
Total Equity 73,506.62
Total Capital 115,224.62
Debt Weighting 36.21
Equity Weighting 63.79
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 6,844.466,522.766,216.185,924.015,645.57
SUM PV LFCF 31,153

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.98
Free cash flow (t + 1) 7,698.89
Terminal Value 193,439.35
Present Value of Terminal Value 144,685.58

Intrinsic Value

Enterprise Value 175,838.57
Net Debt 12,813
Equity Value 163,025.57
Shares Outstanding 3,137.30
Equity Value Per Share 51.96