Discounted Cash Flow (DCF) Analysis Unlevered

Allegiance Bancshares, Inc. (ABTX)

$41.63

-0.36 (-0.86%)

All numbers are in Millions, Currency in USD

Stock DCF: 159.91 | 41.63 | undervalue

Operating Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	109.53	136.29	192.96	210.84	237.13	289.14	352.57	429.91	524.22	639.22
Revenue (%)
EBITDA	44.57	78.85	127.66	102.69	132.06	155.62	189.75	231.38	282.13	344.03
EBITDA (%)
EBIT	42.15	74.90	119.76	95.05	124.51	146.36	178.47	217.62	265.35	323.56
EBIT (%)
Depreciation	2.42	3.95	7.90	7.64	7.55	9.26	11.29	13.76	16.78	20.46
Depreciation (%)

Balance Sheet Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Total Cash	491.72	606.24	718.79	1,195.66	2,531.27	1,677.51	2,045.50	2,494.22	3,041.36	3,708.54
Total Cash (%)
Account Receivables	12.19	17.01	15.47	40.05	33.39	37.42	45.63	55.64	67.84	82.73
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	0.61	2.81	4.33	2.70	1.75	3.98	4.85	5.92	7.22	8.80
Accounts Payable (%)
Capital Expenditure	-2.13	-3.42	-13.39	-7.18	-2.93	-9.27	-11.31	-13.79	-16.81	-20.50
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 41.63
Beta	0.951
Diluted Shares Outstanding	20.55
Cost of Debt
Tax Rate	18.36
After-tax Cost of Debt	10.11%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.290
Total Debt	198.80
Total Equity	855.33
Total Capital	1,054.13
Debt Weighting	18.86
Equity Weighting	81.14
Wacc

Build Up Free Cash

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	109.53	136.29	192.96	210.84	237.13	289.14	352.57	429.91	524.22	639.22
EBITDA	44.57	78.85	127.66	102.69	132.06	155.62	189.75	231.38	282.13	344.03
EBIT	42.15	74.90	119.76	95.05	124.51	146.36	178.47	217.62	265.35	323.56
Tax Rate	33.16%	17.56%	20.23%	18.65%	18.36%	21.59%	21.59%	21.59%	21.59%	21.59%
EBIAT	28.17	61.75	95.53	77.33	101.65	114.76	139.93	170.63	208.06	253.70
Depreciation	2.42	3.95	7.90	7.64	7.55	9.26	11.29	13.76	16.78	20.46
Accounts Receivable	-	-4.82	1.54	-24.59	6.66	-4.03	-8.21	-10.01	-12.21	-14.88
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	2.20	1.51	-1.62	-0.95	2.23	0.87	1.06	1.30	1.58
Capital Expenditure	-2.13	-3.42	-13.38	-7.18	-2.93	-9.27	-11.31	-13.79	-16.81	-20.50
UFCF	28.46	59.66	93.11	51.57	111.98	112.94	132.58	161.66	197.12	240.37
WACC
PV UFCF						103.20	110.69	123.33	137.41	153.11
SUM PV UFCF										627.74

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.44
Free cash flow (t + 1)	245.17
Terminal Value	3,295.33
Present Value of Terminal Value	2,099.03

Intrinsic Value

Enterprise Value	2,726.78
Net Debt	-558.71
Equity Value	3,285.48
Shares Outstanding	20.55
Equity Value Per Share	159.91