Discounted Cash Flow (DCF) Analysis Levered

Washington Federal, Inc. (WAFD)

$30.1

-0.23 (-0.76%)
All numbers are in Millions, Currency in USD
Stock DCF: 83.41 | 30.1 | 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 485.63516.12544.19570.30579.89606.26633.84662.67692.81724.33
Revenue (%)
Operating Cash Flow 179.70190.70234.05166.60314.45242.99254.05265.60277.68290.31
Operating Cash Flow (%)
Capital Expenditure -15.46-27.13-35.53-31.94-29.47-31.10-32.52-34-35.54-37.16
Capital Expenditure (%)
Free Cash Flow 164.24163.58198.52134.66284.98211.89221.53231.60242.14253.15

Weighted Average Cost Of Capital

Share price $ 30.1
Beta 0.803
Diluted Shares Outstanding 72.57
Cost of Debt
Tax Rate 21.24
After-tax Cost of Debt 3.96%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.754
Total Debt 1,720
Total Equity 2,184.23
Total Capital 3,904.23
Debt Weighting 44.05
Equity Weighting 55.95
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 485.63516.12544.19570.30579.89606.26633.84662.67692.81724.33
Operating Cash Flow 179.70190.70234.05166.60314.45242.99254.05265.60277.68290.31
Capital Expenditure -15.46-27.13-35.53-31.94-29.47-31.10-32.52-34-35.54-37.16
Free Cash Flow 164.24163.58198.52134.66284.98211.89221.53231.60242.14253.15
WACC
PV LFCF 199.75196.86194.02191.22188.46
SUM PV LFCF 970.30

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.08
Free cash flow (t + 1) 258.22
Terminal Value 6,328.83
Present Value of Terminal Value 4,711.47

Intrinsic Value

Enterprise Value 5,681.77
Net Debt -370.81
Equity Value 6,052.58
Shares Outstanding 72.57
Equity Value Per Share 83.41