Discounted Cash Flow (DCF) Analysis Levered
Webster Financial Corporation (WBS)
$38.47
+2.14 (+5.89%)
All numbers are in Millions, Currency in USD
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 | 1,189.25 | 1,240.44 | 1,176.67 | 1,223.29 | 2,472.47 | 3,122.99 | 3,944.66 | 4,982.52 | 6,293.45 | 7,949.28 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 469.41 | 303.85 | 380.55 | 688.59 | 1,335.95 | 1,290.61 | 1,630.18 | 2,059.08 | 2,600.84 | 3,285.13 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -32.96 | -25.72 | -21.28 | 3.22 | -28.76 | -47.18 | -59.59 | -75.27 | -95.07 | -120.08 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 436.45 | 278.13 | 359.27 | 691.81 | 1,307.19 | 1,243.43 | 1,570.59 | 1,983.82 | 2,505.77 | 3,165.05 |
Weighted Average Cost Of Capital
| Share price | $ 38.47 |
|---|---|
| Beta | 1.243 |
| Diluted Shares Outstanding | 90.15 |
| Cost of Debt | |
| Tax Rate | 19.26 |
| After-tax Cost of Debt | 3.09% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.560 |
| Total Debt | 6,533.68 |
| Total Equity | 3,468.11 |
| Total Capital | 10,001.79 |
| Debt Weighting | 65.33 |
| Equity Weighting | 34.67 |
| 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 | 1,189.25 | 1,240.44 | 1,176.67 | 1,223.29 | 2,472.47 | 3,122.99 | 3,944.66 | 4,982.52 | 6,293.45 | 7,949.28 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 469.41 | 303.85 | 380.55 | 688.59 | 1,335.95 | 1,290.61 | 1,630.18 | 2,059.08 | 2,600.84 | 3,285.13 |
| Capital Expenditure | -32.96 | -25.72 | -21.28 | 3.22 | -28.76 | -47.18 | -59.59 | -75.27 | -95.07 | -120.08 |
| Free Cash Flow | 436.45 | 278.13 | 359.27 | 691.81 | 1,307.19 | 1,243.43 | 1,570.59 | 1,983.82 | 2,505.77 | 3,165.05 |
| WACC | ||||||||||
| PV LFCF | 1,120.56 | 1,343.64 | 1,611.12 | 1,931.85 | 2,316.44 | |||||
| SUM PV LFCF | 8,768.09 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.34 |
| Free cash flow (t + 1) | 3,228.35 |
| Terminal Value | 96,657.12 |
| Present Value of Terminal Value | 74,519.05 |
Intrinsic Value
| Enterprise Value | 83,287.14 |
|---|---|
| Net Debt | 5,693.74 |
| Equity Value | 77,593.40 |
| Shares Outstanding | 90.15 |
| Equity Value Per Share | 860.70 |