Discounted Cash Flow (DCF) Analysis Levered

Veritex Holdings, Inc. (VBTX)

$27.49

-0.43 (-1.54%)

All numbers are in Millions, Currency in USD

Stock DCF: 205.59 | 27.49 | 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	76.08	126.10	315.18	313.14	333.43	518.07	804.98	1,250.76	1,943.41	3,019.63
Revenue (%)
Operating Cash Flow	26.66	50.39	103.96	107.65	193.49	207.64	322.63	501.29	778.90	1,210.24
Operating Cash Flow (%)
Capital Expenditure	-44.75	-5.01	-7.66	-2.86	-55.13	-85.66	-133.10	-206.81	-321.34	-499.29
Capital Expenditure (%)
Free Cash Flow	-18.09	45.38	96.30	104.79	138.36	121.98	189.53	294.48	457.56	710.95

Weighted Average Cost Of Capital

Share price	$ 27.49
Beta	1.442
Diluted Shares Outstanding	50.04
Cost of Debt
Tax Rate	20.83
After-tax Cost of Debt	2.81%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.634
Total Debt	1,005.33
Total Equity	1,375.49
Total Capital	2,380.82
Debt Weighting	42.23
Equity Weighting	57.77
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	76.08	126.10	315.18	313.14	333.43	518.07	804.98	1,250.76	1,943.41	3,019.63
Operating Cash Flow	26.66	50.39	103.96	107.65	193.49	207.64	322.63	501.29	778.90	1,210.24
Capital Expenditure	-44.75	-5.01	-7.66	-2.86	-55.13	-85.66	-133.10	-206.81	-321.34	-499.29
Free Cash Flow	-18.09	45.38	96.30	104.79	138.36	121.98	189.53	294.48	457.56	710.95
WACC
PV LFCF						85.64	123.98	179.48	259.82	376.14
SUM PV LFCF										1,360.29

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.33
Free cash flow (t + 1)	725.17
Terminal Value	13,605.38
Present Value of Terminal Value	9,552.24

Intrinsic Value

Enterprise Value	10,912.53
Net Debt	625.54
Equity Value	10,286.99
Shares Outstanding	50.04
Equity Value Per Share	205.59