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 43.8451.6953.9254.1965.3672.4480.2888.9898.61109.29
Revenue (%)
Operating Cash Flow 77.88-14.9019.78139.59-108.3040.1944.5449.3654.7160.64
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 75.64-15.9019.54139.35-108.3239.0343.2647.9553.1458.90

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 43.8451.6953.9254.1965.3672.4480.2888.9898.61109.29
Operating Cash Flow 77.88-14.9019.78139.59-108.3040.1944.5449.3654.7160.64
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 75.64-15.9019.54139.35-108.3239.0343.2647.9553.1458.90
WACC
PV LFCF 3534.7834.5634.3434.13
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