Discounted Cash Flow (DCF) Analysis Unlevered

Enterprise Bancorp, Inc. (EBTC)

$35.35

+0.48 (+1.38%)
All numbers are in Millions, Currency in USD
Stock DCF: 157.67 | 35.35 | 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 113.20120.82132.18147.38159.66174.02189.67206.73225.32245.58
Revenue (%)
EBITDA 50.1658.6071.9763.1271.0481.6588.9996.99105.71115.22
EBITDA (%)
EBIT 43.1351.7665.8356.3363.2372.6079.1286.2493.99102.45
EBIT (%)
Depreciation 7.036.846.146.787.819.059.8710.7511.7212.77
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 54.8163.1263.79253.78436.58206.93225.54245.82267.93292.02
Total Cash (%)
Account Receivables 10.6111.4612.2916.0813.3516.511819.6121.3823.30
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 0.480.980.851.941.541.441.571.721.872.04
Accounts Payable (%)
Capital Expenditure -8.21-5.30-12.50-6.68-4.19-9.83-10.72-11.68-12.73-13.87
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 35.35
Beta 0.541
Diluted Shares Outstanding 12.05
Cost of Debt
Tax Rate 24.37
After-tax Cost of Debt 6.42%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.046
Total Debt 88.08
Total Equity 426.01
Total Capital 514.10
Debt Weighting 17.13
Equity Weighting 82.87
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 113.20120.82132.18147.38159.66174.02189.67206.73225.32245.58
EBITDA 50.1658.6071.9763.1271.0481.6588.9996.99105.71115.22
EBIT 43.1351.7665.8356.3363.2372.6079.1286.2493.99102.45
Tax Rate 45.56%23.39%23.29%24.44%24.37%28.21%28.21%28.21%28.21%28.21%
EBIAT 23.4839.6650.5042.5747.8352.1256.8161.9167.4873.55
Depreciation 7.036.846.146.787.819.059.8710.7511.7212.77
Accounts Receivable --0.85-0.83-3.782.73-3.16-1.48-1.62-1.76-1.92
Inventories ----------
Accounts Payable -0.50-0.131.09-0.40-0.090.130.140.150.17
Capital Expenditure -8.21-5.30-12.50-6.68-4.19-9.83-10.72-11.68-12.73-13.87
UFCF 22.3040.8543.1839.9853.7748.0954.6059.5164.8670.70
WACC
PV UFCF 45.3248.4949.8151.1652.55
SUM PV UFCF 247.34

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.11
Free cash flow (t + 1) 72.11
Terminal Value 1,754.49
Present Value of Terminal Value 1,304.27

Intrinsic Value

Enterprise Value 1,551.62
Net Debt -348.49
Equity Value 1,900.11
Shares Outstanding 12.05
Equity Value Per Share 157.67