Discounted Cash Flow (DCF) Analysis Levered

Zions Bancorporation, National Asso... (ZION)

$54.9

+1.97 (+3.72%)
All numbers are in Millions, Currency in USD
Stock DCF: 129.53 | 54.9 | 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 2,6092,7822,8342,7902,9233,008.603,096.713,187.413,280.753,376.83
Revenue (%)
Operating Cash Flow 9281,176697719629900.92927.31954.47982.421,011.19
Operating Cash Flow (%)
Capital Expenditure -169-129-117-171-206-171.01-176.01-181.17-186.48-191.94
Capital Expenditure (%)
Free Cash Flow 7591,047580548423729.92751.30773.30795.94819.25

Weighted Average Cost Of Capital

Share price $ 54.9
Beta 1.265
Diluted Shares Outstanding 165.61
Cost of Debt
Tax Rate 21.92
After-tax Cost of Debt 4.55%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.940
Total Debt 1,012
Total Equity 9,092.15
Total Capital 10,104.15
Debt Weighting 10.02
Equity Weighting 89.98
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 2,6092,7822,8342,7902,9233,008.603,096.713,187.413,280.753,376.83
Operating Cash Flow 9281,176697719629900.92927.31954.47982.421,011.19
Capital Expenditure -169-129-117-171-206-171.01-176.01-181.17-186.48-191.94
Free Cash Flow 7591,047580548423729.92751.30773.30795.94819.25
WACC
PV LFCF 571.46542.12514.28487.87462.82
SUM PV LFCF 3,035.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.50
Free cash flow (t + 1) 835.64
Terminal Value 12,856
Present Value of Terminal Value 8,549.82

Intrinsic Value

Enterprise Value 11,585.35
Net Debt -9,866
Equity Value 21,451.35
Shares Outstanding 165.61
Equity Value Per Share 129.53