Discounted Cash Flow (DCF) Analysis Unlevered

Dime Community Bancshares, Inc. (DCOM)

$17.39

+0.95 (+5.78%)

All numbers are in Millions, Currency in USD

Stock DCF: 1,250.92 | 17.39 | undervalue

Operating Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	159.59	180.48	399.68	418.02	611.88	895.65	1,311.02	1,919.03	2,809.01	4,111.73
Revenue (%)
EBITDA	142.78	84.15	185.61	281.47	382.23	559.49	818.96	1,198.77	1,754.72	2,568.50
EBITDA (%)
EBIT	137.71	79.18	175.18	271.28	365.43	534.90	782.96	1,146.08	1,677.59	2,455.59
EBIT (%)
Depreciation	5.08	4.97	10.43	10.19	16.80	24.59	36	52.69	77.13	112.90
Depreciation (%)

Balance Sheet Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Total Cash	706.48	1,327.19	1,957.43	1,119.88	2,961.04	4,334.27	6,344.35	9,286.64	13,593.46	19,897.63
Total Cash (%)
Account Receivables	-	16.57	40.15	48.56	62.90	92.08	134.78	197.28	288.77	422.70
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	-	-	-	-	-	-	-	-	-	-
Accounts Payable (%)
Capital Expenditure	-1.72	-5.13	-7.83	-8.19	-11.99	-17.55	-25.69	-37.60	-55.04	-80.57
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 17.39
Beta	1.060
Diluted Shares Outstanding	39.47
Cost of Debt
Tax Rate	28.01
After-tax Cost of Debt	3.07%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.699
Total Debt	1,391.62
Total Equity	686.44
Total Capital	2,078.07
Debt Weighting	66.97
Equity Weighting	33.03
Wacc

Build Up Free Cash

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	159.59	180.48	399.68	418.02	611.88	895.65	1,311.02	1,919.03	2,809.01	4,111.73
EBITDA	142.78	84.15	185.61	281.47	382.23	559.49	818.96	1,198.77	1,754.72	2,568.50
EBIT	137.71	79.18	175.18	271.28	365.43	534.90	782.96	1,146.08	1,677.59	2,455.59
Tax Rate	22.78%	24.56%	29.81%	28.01%	26.29%	26.29%	26.29%	26.29%	26.29%	26.29%
EBIAT	106.34	59.73	122.96	195.29	269.35	394.27	577.12	844.77	1,236.54	1,810.01
Depreciation	5.08	4.97	10.43	10.19	16.80	24.59	36	52.69	77.13	112.90
Accounts Receivable	-	-	-23.58	-8.41	-14.34	-29.17	-42.70	-62.51	-91.49	-133.92
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	-	-	-	-	-	-	-	-	-
Capital Expenditure	-1.72	-5.13	-7.83	-3.75	-11.99	-17.55	-25.69	-37.60	-55.04	-80.57
UFCF	109.69	59.58	101.97	188.88	259.82	372.14	544.73	797.36	1,167.14	1,708.42
WACC
PV UFCF					259.82	354.66	494.75	690.17	962.78	1,343.06
SUM PV UFCF										3,845.41

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.93
Free cash flow (t + 1)	1,742.59
Terminal Value	59,474.10
Present Value of Terminal Value	46,755.16

Intrinsic Value

Enterprise Value	50,600.57
Net Debt	1,222.33
Equity Value	49,378.24
Shares Outstanding	39.47
Equity Value Per Share	1,250.92