Discounted Cash Flow (DCF) Analysis Unlevered

Cullen/Frost Bankers, Inc. (CFR)

$136.2

-2.34 (-1.69%)
All numbers are in Millions, Currency in USD
Stock DCF: 353.92 | 136.2 | 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 1,202.891,309.181,367.911,441.451,371.591,419.091,468.241,519.081,571.691,626.12
Revenue (%)
EBITDA 482.70652.16683.34460.72582.73608.35629.42651.22673.77697.10
EBITDA (%)
EBIT 434.89601.99629.25396.35513.44547.96566.94586.57606.88627.90
EBIT (%)
Depreciation 47.8150.1754.0964.3769.2960.3962.4864.6566.8969.20
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 15,382.0914,708.0814,701.4020,725.6430,465.6520,253.2120,954.5821,680.2322,431.0223,207.81
Total Cash (%)
Account Receivables 400.87457.72440.65584.56612.50527.08545.33564.22583.76603.97
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 195.07172.35545.69730.16754.33496.47513.66531.45549.85568.89
Accounts Payable (%)
Capital Expenditure -34.09-79.27-206.72-95.42-65.85-100.53-104.01-107.62-111.34-115.20
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 136.2
Beta 1.188
Diluted Shares Outstanding 64.10
Cost of Debt
Tax Rate 9.49
After-tax Cost of Debt 9.74%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.303
Total Debt 222.19
Total Equity 8,730.01
Total Capital 8,952.20
Debt Weighting 2.48
Equity Weighting 97.52
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 1,202.891,309.181,367.911,441.451,371.591,419.091,468.241,519.081,571.691,626.12
EBITDA 482.70652.16683.34460.72582.73608.35629.42651.22673.77697.10
EBIT 434.89601.99629.25396.35513.44547.96566.94586.57606.88627.90
Tax Rate 10.83%10.57%11.19%5.74%9.49%9.56%9.56%9.56%9.56%9.56%
EBIAT 387.80538.36558.86373.60464.71495.56512.72530.48548.85567.85
Depreciation 47.8150.1754.0964.3769.2960.3962.4864.6566.8969.20
Accounts Receivable --56.8517.07-143.91-27.9485.42-18.25-18.88-19.54-20.22
Inventories ----------
Accounts Payable --22.72373.34184.4724.16-257.8617.1917.7918.4019.04
Capital Expenditure -34.09-79.27-206.72-95.42-65.85-100.53-104.01-107.62-111.34-115.20
UFCF 401.53429.69796.65383.11464.37282.98470.13486.41503.26520.68
WACC
PV UFCF 258.88393.46372.41352.49333.64
SUM PV UFCF 1,710.88

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.31
Free cash flow (t + 1) 531.10
Terminal Value 7,265.37
Present Value of Terminal Value 4,655.41

Intrinsic Value

Enterprise Value 6,366.29
Net Debt -16,318.83
Equity Value 22,685.13
Shares Outstanding 64.10
Equity Value Per Share 353.92