Discounted Cash Flow (DCF) Analysis Unlevered

Bank of America Corporation (BAC)

$31.73

-0.77 (-2.37%)
All numbers are in Millions, Currency in USD
Stock DCF: 117.49 | 31.73 | 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 87,35291,24791,24485,52889,11389,643.8490,177.8490,715.0291,255.4191,799.01
Revenue (%)
EBITDA 44,22855,98456,82829,06340,61245,507.1445,778.2246,050.9246,325.2446,601.20
EBITDA (%)
EBIT 42,12553,92155,09927,22038,71443,562.2243,821.7244,082.7644,345.3644,609.52
EBIT (%)
Depreciation 2,1032,0631,7291,8431,8981,944.921,956.511,968.161,979.891,991.68
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 471,218414,264414,306621,500654,543521,491.49524,597.98527,722.97530,866.58534,028.92
Total Cash (%)
Account Receivables 83,58088,19475,65881,15787,02083,869.8884,369.4984,872.0785,377.6585,886.23
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable ----------
Accounts Payable (%)
Capital Expenditure ----------
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 31.73
Beta 1.384
Diluted Shares Outstanding 8,796.90
Cost of Debt
Tax Rate 5.88
After-tax Cost of Debt 1.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.229
Total Debt 303,870
Total Equity 279,125.64
Total Capital 582,995.64
Debt Weighting 52.12
Equity Weighting 47.88
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 87,35291,24791,24485,52889,11389,643.8490,177.8490,715.0291,255.4191,799.01
EBITDA 44,22855,98456,82829,06340,61245,507.1445,778.2246,050.9246,325.2446,601.20
EBIT 42,12553,92155,09927,22038,71443,562.2243,821.7244,082.7644,345.3644,609.52
Tax Rate 37.59%18.61%16.25%5.80%5.88%16.83%16.83%16.83%16.83%16.83%
EBIAT 26,290.4543,884.8746,142.9325,642.2636,437.3836,232.1436,447.9736,665.0936,883.5037,103.21
Depreciation 2,1032,0631,7291,8431,8981,944.921,956.511,968.161,979.891,991.68
Accounts Receivable --4,61412,536-5,499-5,8633,150.12-499.61-502.58-505.58-508.59
Inventories ----------
Accounts Payable ----------
Capital Expenditure ----------
UFCF -----41,327.1837,904.8738,130.6738,357.8138,586.30
WACC
PV UFCF 39,113.3633,952.6632,325.3030,775.9429,300.85
SUM PV UFCF 165,468.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.66
Free cash flow (t + 1) 39,358.03
Terminal Value 1,075,356.01
Present Value of Terminal Value 816,580.94

Intrinsic Value

Enterprise Value 982,049.05
Net Debt -51,495
Equity Value 1,033,544.05
Shares Outstanding 8,796.90
Equity Value Per Share 117.49