Discounted Cash Flow (DCF) Analysis Levered

Univest Financial Corporation (UVSP)

$17.06

-0.08 (-0.47%)

All numbers are in Millions, Currency in USD

Stock DCF: 68.55 | 17.06 | 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	218.24	234.65	252.69	271.61	296.18	319.69	345.06	372.44	402	433.90
Revenue (%)
Operating Cash Flow	86.01	73.15	51.18	102.34	109.45	105.80	114.19	123.26	133.04	143.59
Operating Cash Flow (%)
Capital Expenditure	-3.12	-2.45	-3.75	-5.88	-5.22	-5.04	-5.44	-5.87	-6.34	-6.84
Capital Expenditure (%)
Free Cash Flow	82.89	70.70	47.43	96.46	104.23	100.76	108.75	117.38	126.70	136.75

Weighted Average Cost Of Capital

Share price	$ 17.06
Beta	0.915
Diluted Shares Outstanding	29.24
Cost of Debt
Tax Rate	19.64
After-tax Cost of Debt	5.75%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.758
Total Debt	473.55
Total Equity	498.90
Total Capital	972.45
Debt Weighting	48.70
Equity Weighting	51.30
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	218.24	234.65	252.69	271.61	296.18	319.69	345.06	372.44	402	433.90
Operating Cash Flow	86.01	73.15	51.18	102.34	109.45	105.80	114.19	123.26	133.04	143.59
Capital Expenditure	-3.12	-2.45	-3.75	-5.88	-5.22	-5.04	-5.44	-5.87	-6.34	-6.84
Free Cash Flow	82.89	70.70	47.43	96.46	104.23	100.76	108.75	117.38	126.70	136.75
WACC
PV LFCF						93.90	94.46	95.02	95.58	96.15
SUM PV LFCF										475.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.30
Free cash flow (t + 1)	139.49
Terminal Value	2,631.86
Present Value of Terminal Value	1,850.39

Intrinsic Value

Enterprise Value	2,325.50
Net Debt	320.75
Equity Value	2,004.75
Shares Outstanding	29.24
Equity Value Per Share	68.55