Discounted Cash Flow (DCF) Analysis Levered

VersaBank (VB.TO)

$14.64

-0.06 (-%)

All numbers are in Millions, Currency in USD

Stock DCF: 33.58 | 14.64 | 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	43.84	51.69	53.92	54.19	65.36	72.44	80.28	88.98	98.61	109.29
Revenue (%)
Operating Cash Flow	77.88	-14.90	19.78	139.59	-108.30	40.19	44.54	49.36	54.71	60.64
Operating Cash Flow (%)
Capital Expenditure	-2.24	-0.99	-0.24	-0.25	-0.01	-1.15	-1.28	-1.42	-1.57	-1.74
Capital Expenditure (%)
Free Cash Flow	75.64	-15.90	19.54	139.35	-108.32	39.03	43.26	47.95	53.14	58.90

Weighted Average Cost Of Capital

Share price	$ 14.64
Beta	1.061
Diluted Shares Outstanding	21.12
Cost of Debt
Tax Rate	27.31
After-tax Cost of Debt	21.24%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.376
Total Debt	100.39
Total Equity	309.25
Total Capital	409.63
Debt Weighting	24.51
Equity Weighting	75.49
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	43.84	51.69	53.92	54.19	65.36	72.44	80.28	88.98	98.61	109.29
Operating Cash Flow	77.88	-14.90	19.78	139.59	-108.30	40.19	44.54	49.36	54.71	60.64
Capital Expenditure	-2.24	-0.99	-0.24	-0.25	-0.01	-1.15	-1.28	-1.42	-1.57	-1.74
Free Cash Flow	75.64	-15.90	19.54	139.35	-108.32	39.03	43.26	47.95	53.14	58.90
WACC
PV LFCF						35	34.78	34.56	34.34	34.13
SUM PV LFCF										172.81

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.53
Free cash flow (t + 1)	60.07
Terminal Value	630.37
Present Value of Terminal Value	365.29

Intrinsic Value

Enterprise Value	538.10
Net Debt	-171.14
Equity Value	709.24
Shares Outstanding	21.12
Equity Value Per Share	33.58