Discounted Cash Flow (DCF) Analysis Unlevered

Cadence Bank (CADE)

$25.95

-0.66 (-2.48%)
All numbers are in Millions, Currency in USD
Stock DCF: 68.80 | 25.95 | 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 742.07857.26930.621,027.471,183.881,331.011,496.421,682.391,891.472,126.53
Revenue (%)
EBITDA 300.70377.94463.24439.45499.19583.83656.39737.96829.68932.78
EBITDA (%)
EBIT 270.58343.40424.59396.07323.25500.45562.64632.57711.18799.56
EBIT (%)
Depreciation 30.1234.5538.6543.37175.9383.3993.75105.40118.50133.22
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 3,056.093,081.624,814.986,648.3716,901.158,953.3410,066.0211,316.9812,723.4114,304.62
Total Cash (%)
Account Receivables 45.6757.0565.17106.3289.27100.36112.83126.85142.62160.34
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 4.888.5415.1210.8812.8414.4416.2318.2520.5223.07
Accounts Payable (%)
Capital Expenditure -35.74-39.54-54.99-55.91-72.27-71.56-80.46-90.45-101.70-114.33
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 25.95
Beta 1.072
Diluted Shares Outstanding 120.67
Cost of Debt
Tax Rate 20.96
After-tax Cost of Debt 12.50%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.756
Total Debt 482.41
Total Equity 3,131.36
Total Capital 3,613.77
Debt Weighting 13.35
Equity Weighting 86.65
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 742.07857.26930.621,027.471,183.881,331.011,496.421,682.391,891.472,126.53
EBITDA 300.70377.94463.24439.45499.19583.83656.39737.96829.68932.78
EBIT 270.58343.40424.59396.07323.25500.45562.64632.57711.18799.56
Tax Rate 33.93%16.52%21.79%20.69%20.96%22.78%22.78%22.78%22.78%22.78%
EBIAT 178.77286.65332.08314.12255.48386.45434.48488.47549.18617.43
Depreciation 30.1234.5538.6543.37175.9383.3993.75105.40118.50133.22
Accounts Receivable --11.38-8.12-41.1517.05-11.09-12.47-14.02-15.76-17.72
Inventories ----------
Accounts Payable -3.666.58-4.241.961.601.792.022.272.55
Capital Expenditure -35.74-39.54-54.99-55.91-72.27-71.56-80.46-90.45-101.70-114.33
UFCF 173.15273.94314.21256.20378.16388.78437.09491.41552.48621.14
WACC
PV UFCF 355.83366.14376.76387.68398.92
SUM PV UFCF 1,885.33

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.26
Free cash flow (t + 1) 633.57
Terminal Value 8,726.81
Present Value of Terminal Value 5,604.66

Intrinsic Value

Enterprise Value 7,489.99
Net Debt -812.27
Equity Value 8,302.26
Shares Outstanding 120.67
Equity Value Per Share 68.80