Discounted Cash Flow (DCF) Analysis Levered

Zions Bancorporation, National Asso... (ZION)

$34.89

+0.94 (+2.77%)
All numbers are in Millions, Currency in USD
Stock DCF: 176.10 | 34.89 | 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 2,7822,8342,7892,9113,3373,497.923,666.613,843.434,028.784,223.06
Revenue (%)
Operating Cash Flow 1,1766977196291,4701,107.481,160.891,216.871,275.551,337.06
Operating Cash Flow (%)
Capital Expenditure -129-117-171-206-190-193.55-202.89-212.67-222.93-233.68
Capital Expenditure (%)
Free Cash Flow 1,0475805484231,280913.929581,004.201,052.621,103.39

Weighted Average Cost Of Capital

Share price $ 34.89
Beta 1.141
Diluted Shares Outstanding 150.27
Cost of Debt
Tax Rate 21.27
After-tax Cost of Debt 1.88%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.959
Total Debt 7,751
Total Equity 5,242.96
Total Capital 12,993.96
Debt Weighting 59.65
Equity Weighting 40.35
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 2,7822,8342,7892,9113,3373,497.923,666.613,843.434,028.784,223.06
Operating Cash Flow 1,1766977196291,4701,107.481,160.891,216.871,275.551,337.06
Capital Expenditure -129-117-171-206-190-193.55-202.89-212.67-222.93-233.68
Free Cash Flow 1,0475805484231,280913.929581,004.201,052.621,103.39
WACC
PV LFCF 869.25866.62864861.39858.79
SUM PV LFCF 4,320.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.14
Free cash flow (t + 1) 1,125.45
Terminal Value 35,842.47
Present Value of Terminal Value 27,897.04

Intrinsic Value

Enterprise Value 32,217.09
Net Debt 5,754
Equity Value 26,463.09
Shares Outstanding 150.27
Equity Value Per Share 176.10