Discounted Cash Flow (DCF) Analysis Unlevered
ChoiceOne Financial Services, Inc. (COFS)
$21.92
+0.39 (+1.81%)
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 | 27.47 | 28.98 | 36.94 | 73.77 | 79.84 | 107.96 | 145.98 | 197.40 | 266.94 | 360.97 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 12.48 | 13.03 | 16.29 | 31.24 | 42.90 | 49.78 | 67.32 | 91.03 | 123.09 | 166.45 |
| EBITDA (%) | ||||||||||
| EBIT | 10.03 | 10.95 | 13.16 | 23.53 | 30.48 | 38.87 | 52.56 | 71.07 | 96.10 | 129.96 |
| EBIT (%) | ||||||||||
| Depreciation | 2.45 | 2.08 | 3.13 | 7.71 | 12.42 | 10.92 | 14.76 | 19.96 | 26.99 | 36.50 |
| 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 | 192.43 | 186.29 | 399.14 | 654.31 | 1,130.77 | 1,020.66 | 1,380.17 | 1,866.33 | 2,523.73 | 3,412.69 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | - | - | - | - | - | - | - | - | - | - |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -1.66 | -4.21 | -0.77 | -1.85 | -2.76 | -6.17 | -8.35 | -11.29 | -15.26 | -20.64 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 21.92 |
|---|---|
| Beta | 0.477 |
| Diluted Shares Outstanding | 7.51 |
| Cost of Debt | |
| Tax Rate | 16.82 |
| After-tax Cost of Debt | 3.89% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.102 |
| Total Debt | 85.02 |
| Total Equity | 164.54 |
| Total Capital | 249.55 |
| Debt Weighting | 34.07 |
| Equity Weighting | 65.93 |
| 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 | 27.47 | 28.98 | 36.94 | 73.77 | 79.84 | 107.96 | 145.98 | 197.40 | 266.94 | 360.97 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 12.48 | 13.03 | 16.29 | 31.24 | 42.90 | 49.78 | 67.32 | 91.03 | 123.09 | 166.45 |
| EBIT | 10.03 | 10.95 | 13.16 | 23.53 | 30.48 | 38.87 | 52.56 | 71.07 | 96.10 | 129.96 |
| Tax Rate | 27.90% | 13.61% | 15.29% | 17.33% | 16.82% | 18.19% | 18.19% | 18.19% | 18.19% | 18.19% |
| EBIAT | 7.23 | 9.46 | 11.15 | 19.45 | 25.35 | 31.80 | 43 | 58.14 | 78.62 | 106.32 |
| Depreciation | 2.45 | 2.08 | 3.13 | 7.71 | 12.42 | 10.92 | 14.76 | 19.96 | 26.99 | 36.50 |
| Accounts Receivable | - | - | - | - | - | - | - | - | - | - |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure | -1.66 | -4.21 | -0.77 | -1.85 | -2.76 | -6.17 | -8.35 | -11.29 | -15.26 | -20.64 |
| UFCF | 8.03 | 7.33 | 13.51 | 25.31 | 35.02 | 36.54 | 49.41 | 66.82 | 90.36 | 122.18 |
| WACC | ||||||||||
| PV UFCF | 34.90 | 45.09 | 58.24 | 75.22 | 97.16 | |||||
| SUM PV UFCF | 310.60 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.69 |
| Free cash flow (t + 1) | 124.63 |
| Terminal Value | 4,632.95 |
| Present Value of Terminal Value | 3,684.10 |
Intrinsic Value
| Enterprise Value | 3,994.70 |
|---|---|
| Net Debt | 53.13 |
| Equity Value | 3,941.57 |
| Shares Outstanding | 7.51 |
| Equity Value Per Share | 525.11 |