Discounted Cash Flow (DCF) Analysis Levered

Village Bank and Trust Financial Co... (VBFC)

$39.3

-0.30 (-0.76%)

All numbers are in Millions, Currency in USD

Stock DCF: 151.41 | 39.3 | 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	23.35	26.07	33.64	37.84	32.31	35.42	38.84	42.58	46.68	51.18
Revenue (%)
Operating Cash Flow	7.09	0.15	-7.14	42.53	10.27	10.90	11.95	13.10	14.37	15.75
Operating Cash Flow (%)
Capital Expenditure	-0.20	-0.23	-0.33	-0.34	-0.29	-0.32	-0.35	-0.38	-0.42	-0.46
Capital Expenditure (%)
Free Cash Flow	6.89	-0.08	-7.47	42.19	9.98	10.58	11.60	12.72	13.95	15.29

Weighted Average Cost Of Capital

Share price	$ 39.3
Beta	0.699
Diluted Shares Outstanding	1.46
Cost of Debt
Tax Rate	19.33
After-tax Cost of Debt	16.39%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.012
Total Debt	8.76
Total Equity	57.37
Total Capital	66.13
Debt Weighting	13.25
Equity Weighting	86.75
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	23.35	26.07	33.64	37.84	32.31	35.42	38.84	42.58	46.68	51.18
Operating Cash Flow	7.09	0.15	-7.14	42.53	10.27	10.90	11.95	13.10	14.37	15.75
Capital Expenditure	-0.20	-0.23	-0.33	-0.34	-0.29	-0.32	-0.35	-0.38	-0.42	-0.46
Free Cash Flow	6.89	-0.08	-7.47	42.19	9.98	10.58	11.60	12.72	13.95	15.29
WACC
PV LFCF						9.78	9.90	10.03	10.15	10.28
SUM PV LFCF										50.14

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.26
Free cash flow (t + 1)	15.60
Terminal Value	249.19
Present Value of Terminal Value	167.57

Intrinsic Value

Enterprise Value	217.71
Net Debt	-3.30
Equity Value	221.01
Shares Outstanding	1.46
Equity Value Per Share	151.41