Discounted Cash Flow (DCF) Analysis Unlevered
ArrowMark Financial Corp. (BANX)
$17.37
+0.21 (+1.22%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 11.84 | 14.45 | 9.85 | 14.42 | 7.86 | 7.68 | 7.51 | 7.35 | 7.18 | 7.02 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 11.94 | 12.61 | 7.78 | 12.63 | 7.70 | 6.96 | 6.80 | 6.65 | 6.50 | 6.36 |
| EBITDA (%) | ||||||||||
| EBIT | - | - | - | - | - | 6.96 | 6.80 | 6.65 | 6.50 | 6.36 |
| EBIT (%) | ||||||||||
| Depreciation | - | - | - | - | - | - | - | - | - | - |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Total Cash | 2.83 | 0.04 | 0.36 | 0.07 | 0.37 | 0.51 | 0.50 | 0.48 | 0.47 | 0.46 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 3.48 | 1.78 | 6.97 | 2.49 | 3.25 | 2.63 | 2.57 | 2.52 | 2.46 | 2.40 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 3.48 | 2.53 | 3.04 | 3.40 | 3.53 | 2.25 | 2.20 | 2.15 | 2.10 | 2.05 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 17.37 |
|---|---|
| Beta | 0.566 |
| Diluted Shares Outstanding | 7.15 |
| Cost of Debt | |
| Tax Rate | 0.00 |
| After-tax Cost of Debt | 4.19% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.267 |
| Total Debt | 55.60 |
| Total Equity | 124.28 |
| Total Capital | 179.88 |
| Debt Weighting | 30.91 |
| Equity Weighting | 69.09 |
| Wacc |
Build Up Free Cash
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 11.84 | 14.45 | 9.85 | 14.42 | 7.86 | 7.68 | 7.51 | 7.35 | 7.18 | 7.02 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 11.94 | 12.61 | 7.78 | 12.63 | 7.70 | 6.96 | 6.80 | 6.65 | 6.50 | 6.36 |
| EBIT | - | - | - | - | - | 6.96 | 6.80 | 6.65 | 6.50 | 6.36 |
| Tax Rate | 0.00% | 0.00% | 0.00% | 1.35% | 0.00% | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% |
| EBIAT | - | - | - | - | - | 6.94 | 6.78 | 6.63 | 6.48 | 6.34 |
| Depreciation | - | - | - | - | - | - | - | - | - | - |
| Accounts Receivable | - | 1.70 | -5.19 | 4.48 | -0.75 | 0.62 | 0.06 | 0.06 | 0.06 | 0.05 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | -0.95 | 0.51 | 0.36 | 0.12 | -1.28 | -0.05 | -0.05 | -0.05 | -0.05 |
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
| UFCF | - | - | - | - | - | 6.28 | 6.79 | 6.64 | 6.49 | 6.35 |
| WACC | ||||||||||
| PV UFCF | 5.90 | 6.01 | 5.53 | 5.08 | 4.67 | |||||
| SUM PV UFCF | 27.19 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.32 |
| Free cash flow (t + 1) | 6.48 |
| Terminal Value | 149.89 |
| Present Value of Terminal Value | 110.33 |
Intrinsic Value
| Enterprise Value | 137.52 |
|---|---|
| Net Debt | 55.23 |
| Equity Value | 82.29 |
| Shares Outstanding | 7.15 |
| Equity Value Per Share | 11.50 |