Discounted Cash Flow (DCF) Analysis Levered

Zions Bancorporation, National Asso... (ZION)

$33.95

+0.78 (+2.35%)

All numbers are in Millions, Currency in USD

Stock DCF: 178.89 | 33.95 | 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	2,782	2,834	2,789	2,911	3,337	3,497.92	3,666.61	3,843.43	4,028.78	4,223.06
Revenue (%)
Operating Cash Flow	1,176	697	719	629	1,470	1,107.48	1,160.89	1,216.87	1,275.55	1,337.06
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	1,047	580	548	423	1,280	913.92	958	1,004.20	1,052.62	1,103.39

Weighted Average Cost Of Capital

Share price	$ 33.95
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	9.983
Total Debt	7,751
Total Equity	5,101.70
Total Capital	12,852.70
Debt Weighting	60.31
Equity Weighting	39.69
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	2,782	2,834	2,789	2,911	3,337	3,497.92	3,666.61	3,843.43	4,028.78	4,223.06
Operating Cash Flow	1,176	697	719	629	1,470	1,107.48	1,160.89	1,216.87	1,275.55	1,337.06
Capital Expenditure	-129	-117	-171	-206	-190	-193.55	-202.89	-212.67	-222.93	-233.68
Free Cash Flow	1,047	580	548	423	1,280	913.92	958	1,004.20	1,052.62	1,103.39
WACC
PV LFCF						869.58	867.28	864.99	862.70	860.43
SUM PV LFCF										4,324.98

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.10
Free cash flow (t + 1)	1,125.45
Terminal Value	36,304.95
Present Value of Terminal Value	28,310.81

Intrinsic Value

Enterprise Value	32,635.79
Net Debt	5,754
Equity Value	26,881.79
Shares Outstanding	150.27
Equity Value Per Share	178.89