Discounted Cash Flow (DCF) Analysis Unlevered
ArrowMark Financial Corp. (BANX)
$17.11
-0.08 (-0.47%)
All numbers are in Millions, Currency in USD
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 | 14.07 | 11.84 | 14.45 | 9.85 | 14.24 | 14.92 | 15.62 | 16.36 | 17.14 | 17.95 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 13.79 | 11.94 | 14.02 | 8.55 | 13.93 | 14.33 | 15.01 | 15.72 | 16.47 | 17.25 |
| EBITDA (%) | ||||||||||
| EBIT | - | - | - | - | - | 14.33 | 15.01 | 15.72 | 16.47 | 17.25 |
| EBIT (%) | ||||||||||
| Depreciation | - | - | - | - | - | - | - | - | - | - |
| 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 | 0.03 | 2.83 | 0.04 | 2.28 | 0.08 | 1.44 | 1.50 | 1.57 | 1.65 | 1.73 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 2.44 | 3.48 | 1.78 | 6.97 | 2.49 | 4.40 | 4.61 | 4.82 | 5.05 | 5.29 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 3.29 | 4.35 | 2.53 | 3.04 | 3.40 | 3.95 | 4.14 | 4.33 | 4.54 | 4.75 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 17.11 |
|---|---|
| Beta | 0.575 |
| Diluted Shares Outstanding | 6.76 |
| Cost of Debt | |
| Tax Rate | 0.00 |
| After-tax Cost of Debt | 2.16% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.414 |
| Total Debt | 60 |
| Total Equity | 115.61 |
| Total Capital | 175.61 |
| Debt Weighting | 34.17 |
| Equity Weighting | 65.83 |
| 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 | 14.07 | 11.84 | 14.45 | 9.85 | 14.24 | 14.92 | 15.62 | 16.36 | 17.14 | 17.95 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 13.79 | 11.94 | 14.02 | 8.55 | 13.93 | 14.33 | 15.01 | 15.72 | 16.47 | 17.25 |
| EBIT | - | - | - | - | - | 14.33 | 15.01 | 15.72 | 16.47 | 17.25 |
| Tax Rate | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| EBIAT | - | - | - | - | - | 14.33 | 15.01 | 15.72 | 16.47 | 17.25 |
| Depreciation | - | - | - | - | - | - | - | - | - | - |
| Accounts Receivable | - | -1.05 | 1.70 | -5.19 | 4.48 | -1.90 | -0.21 | -0.22 | -0.23 | -0.24 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 1.06 | -1.82 | 0.51 | 0.36 | 0.55 | 0.19 | 0.20 | 0.21 | 0.21 |
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
| UFCF | - | - | - | - | - | 12.98 | 14.99 | 15.70 | 16.44 | 17.22 |
| WACC | ||||||||||
| PV UFCF | 12.37 | 13.61 | 13.58 | 13.55 | 13.52 | |||||
| SUM PV UFCF | 66.62 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.96 |
| Free cash flow (t + 1) | 17.57 |
| Terminal Value | 593.50 |
| Present Value of Terminal Value | 465.91 |
Intrinsic Value
| Enterprise Value | 532.54 |
|---|---|
| Net Debt | 59.92 |
| Equity Value | 472.62 |
| Shares Outstanding | 6.76 |
| Equity Value Per Share | 69.95 |