Discounted Cash Flow (DCF) Analysis Levered

Zions Bancorporation, National Asso... (ZION)

$30.87

-1.14 (-3.55%)

All numbers are in Millions, Currency in USD

Stock DCF: 78.90 | 30.87 | 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	2,790	2,923	3,152	3,253.79	3,358.88	3,467.35	3,579.33	3,694.92
Revenue (%)
Operating Cash Flow	1,176	697	719	629	1,470	1,046.37	1,080.16	1,115.05	1,151.06	1,188.23
Operating Cash Flow (%)
Capital Expenditure	-129	-117	-171	-206	-172.90	-178.49	-184.25	-190.20	-196.34	-202.68
Capital Expenditure (%)
Free Cash Flow	1,047	580	548	423	1,297.10	867.89	895.91	924.85	954.72	985.55

Weighted Average Cost Of Capital

Share price	$ 30.87
Beta	1.101
Diluted Shares Outstanding	150.27
Cost of Debt
Tax Rate	21.27
After-tax Cost of Debt	22.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.942
Total Debt	651
Total Equity	4,638.87
Total Capital	5,289.87
Debt Weighting	12.31
Equity Weighting	87.69
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	2,790	2,923	3,152	3,253.79	3,358.88	3,467.35	3,579.33	3,694.92
Operating Cash Flow	1,176	697	719	629	1,470	1,046.37	1,080.16	1,115.05	1,151.06	1,188.23
Capital Expenditure	-129	-117	-171	-206	-172.90	-178.49	-184.25	-190.20	-196.34	-202.68
Free Cash Flow	1,047	580	548	423	1,297.10	867.89	895.91	924.85	954.72	985.55
WACC
PV LFCF						784.78	732.55	683.79	638.28	595.80
SUM PV LFCF										3,435.19

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.59
Free cash flow (t + 1)	1,005.26
Terminal Value	11,702.66
Present Value of Terminal Value	7,074.66

Intrinsic Value

Enterprise Value	10,509.85
Net Debt	-1,346
Equity Value	11,855.85
Shares Outstanding	150.27
Equity Value Per Share	78.90