Discounted Cash Flow (DCF) Analysis Levered

WesBanco, Inc. (WSBC)

$36.05

+0.16 (+0.45%)

All numbers are in Millions, Currency in USD

Stock DCF: 99.82 | 36.05 | 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	374.63	441.79	509.69	599.30	590.72	663.74	745.79	837.98	941.57	1,057.97
Revenue (%)
Operating Cash Flow	141.63	191.56	163.36	59.61	336.30	239.07	268.62	301.83	339.14	381.06
Operating Cash Flow (%)
Capital Expenditure	-6.03	-4.67	-12.20	-7.55	-9.34	-10.49	-11.79	-13.24	-14.88	-16.72
Capital Expenditure (%)
Free Cash Flow	135.59	186.89	151.16	52.06	326.96	228.58	256.83	288.58	324.26	364.34

Weighted Average Cost Of Capital

Share price	$ 36.05
Beta	0.943
Diluted Shares Outstanding	67.31
Cost of Debt
Tax Rate	19.74
After-tax Cost of Debt	4.73%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.970
Total Debt	458.67
Total Equity	2,426.55
Total Capital	2,885.22
Debt Weighting	15.90
Equity Weighting	84.10
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	374.63	441.79	509.69	599.30	590.72	663.74	745.79	837.98	941.57	1,057.97
Operating Cash Flow	141.63	191.56	163.36	59.61	336.30	239.07	268.62	301.83	339.14	381.06
Capital Expenditure	-6.03	-4.67	-12.20	-7.55	-9.34	-10.49	-11.79	-13.24	-14.88	-16.72
Free Cash Flow	135.59	186.89	151.16	52.06	326.96	228.58	256.83	288.58	324.26	364.34
WACC
PV LFCF						212.73	222.45	232.62	243.26	254.38
SUM PV LFCF										1,165.44

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.45
Free cash flow (t + 1)	371.63
Terminal Value	6,818.89
Present Value of Terminal Value	4,760.82

Intrinsic Value

Enterprise Value	5,926.26
Net Debt	-792.68
Equity Value	6,718.94
Shares Outstanding	67.31
Equity Value Per Share	99.82