Discounted Cash Flow (DCF) Analysis Levered

U.S. Bancorp (USB)

$33.45

-0.96 (-2.79%)
All numbers are in Millions, Currency in USD
Stock DCF: 165.91 | 33.45 | 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 22,52122,88323,22622,72124,18424,629.6525,083.5125,545.7426,016.4926,495.91
Revenue (%)
Operating Cash Flow 10,5644,8893,7169,87021,11910,592.6310,787.8310,986.6211,189.0811,395.26
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----10,592.6310,787.8310,986.6211,189.0811,395.26

Weighted Average Cost Of Capital

Share price $ 33.45
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 9.193
Total Debt 71,045
Total Equity 50,509.50
Total Capital 121,554.50
Debt Weighting 58.45
Equity Weighting 41.55
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 22,52122,88323,22622,72124,18424,629.6525,083.5125,545.7426,016.4926,495.91
Operating Cash Flow 10,5644,8893,7169,87021,11910,592.6310,787.8310,986.6211,189.0811,395.26
Capital Expenditure ----------
Free Cash Flow -----10,592.6310,787.8310,986.6211,189.0811,395.26
WACC
PV LFCF 9,999.659,613.829,242.888,886.258,543.37
SUM PV LFCF 46,285.97

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.93
Free cash flow (t + 1) 11,623.17
Terminal Value 295,754.89
Present Value of Terminal Value 221,736.44

Intrinsic Value

Enterprise Value 268,022.41
Net Debt 17,503
Equity Value 250,519.41
Shares Outstanding 1,510
Equity Value Per Share 165.91