Discounted Cash Flow (DCF) Analysis Unlevered

First Financial Bankshares, Inc. (FFIN)

$42.52

-0.26 (-0.61%)
All numbers are in Millions, Currency in USD
Stock DCF: 44.88 | 42.52 | 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 319.38364.47386.95477.68499.56559.90627.53703.33788.27883.48
Revenue (%)
EBITDA 169.39209.65239.80269.40291.07321.60360.45403.98452.78507.46
EBITDA (%)
EBIT 156.48197.10228.13256.61278.01303.92340.62381.76427.88479.56
EBIT (%)
Depreciation 12.9212.5511.6612.7913.0617.6919.8222.2224.9027.91
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 3,461.283,408.883,692.775,122.117,101.776,122.256,861.717,690.498,619.379,660.44
Total Cash (%)
Account Receivables ----------
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable ----------
Accounts Payable (%)
Capital Expenditure -14.16-17.65-8.67-16.45-19.21-21.06-23.60-26.45-29.65-33.23
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 42.52
Beta 0.883
Diluted Shares Outstanding 142.54
Cost of Debt
Tax Rate 16.33
After-tax Cost of Debt 24.01%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.866
Total Debt 21.05
Total Equity 6,061.01
Total Capital 6,082.07
Debt Weighting 0.35
Equity Weighting 99.65
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 319.38364.47386.95477.68499.56559.90627.53703.33788.27883.48
EBITDA 169.39209.65239.80269.40291.07321.60360.45403.98452.78507.46
EBIT 156.48197.10228.13256.61278.01303.92340.62381.76427.88479.56
Tax Rate 18.22%15.46%16.78%16.64%16.33%16.68%16.68%16.68%16.68%16.68%
EBIAT 127.97166.64189.86213.91232.62253.21283.79318.07356.49399.55
Depreciation 12.9212.5511.6612.7913.0617.6919.8222.2224.9027.91
Accounts Receivable ----------
Inventories ----------
Accounts Payable ----------
Capital Expenditure -14.16-17.65-8.67-16.45-19.20-21.06-23.60-26.45-29.65-33.23
UFCF 126.72161.55192.86210.25226.47249.84280.02313.84351.74394.23
WACC
PV UFCF 231.51240.43249.69259.31269.30
SUM PV UFCF 1,250.23

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.92
Free cash flow (t + 1) 402.11
Terminal Value 6,792.45
Present Value of Terminal Value 4,639.99

Intrinsic Value

Enterprise Value 5,890.22
Net Debt -507.54
Equity Value 6,397.75
Shares Outstanding 142.54
Equity Value Per Share 44.88