Discounted Cash Flow (DCF) Analysis Unlevered
First Foundation Inc. (FFWM)
$5.29
+0.41 (+8.40%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 176.30 | 193.87 | 243.85 | 294.96 | 328.75 | 384.76 | 450.32 | 527.06 | 616.86 | 721.97 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 117.65 | 164.91 | 172.65 | 172.56 | 234.99 | 271.32 | 317.55 | 371.66 | 434.99 | 509.11 |
| EBITDA (%) | ||||||||||
| EBIT | 111.78 | 158.30 | 166.01 | 165.72 | 228.64 | 260.77 | 305.20 | 357.21 | 418.08 | 489.31 |
| EBIT (%) | ||||||||||
| Depreciation | 5.87 | 6.60 | 6.64 | 6.84 | 6.35 | 10.55 | 12.35 | 14.45 | 16.91 | 19.79 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Total Cash | 876.88 | 1,080.35 | 1,437.13 | 2,313.13 | 882.65 | 2,075.17 | 2,428.76 | 2,842.61 | 3,326.97 | 3,893.86 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | - | - | - | - | - | - | - | - | - | - |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 40.26 | 66.42 | 79.02 | 110.07 | 147.25 | 132.06 | 154.56 | 180.89 | 211.72 | 247.79 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -2.71 | -2.23 | -2.86 | -3.21 | -4.07 | -4.76 | -5.57 | -6.52 | -7.63 | -8.93 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 5.29 |
|---|---|
| Beta | 0.879 |
| Diluted Shares Outstanding | 56.49 |
| Cost of Debt | |
| Tax Rate | 26.23 |
| After-tax Cost of Debt | 4.59% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.943 |
| Total Debt | 1,369.94 |
| Total Equity | 298.83 |
| Total Capital | 1,668.77 |
| Debt Weighting | 82.09 |
| Equity Weighting | 17.91 |
| Wacc |
Build Up Free Cash
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 176.30 | 193.87 | 243.85 | 294.96 | 328.75 | 384.76 | 450.32 | 527.06 | 616.86 | 721.97 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 117.65 | 164.91 | 172.65 | 172.56 | 234.99 | 271.32 | 317.55 | 371.66 | 434.99 | 509.11 |
| EBIT | 111.78 | 158.30 | 166.01 | 165.72 | 228.64 | 260.77 | 305.20 | 357.21 | 418.08 | 489.31 |
| Tax Rate | 28.51% | 29.26% | 28.96% | 27.85% | 26.23% | 28.16% | 28.16% | 28.16% | 28.16% | 28.16% |
| EBIAT | 79.92 | 111.99 | 117.93 | 119.56 | 168.67 | 187.33 | 219.25 | 256.61 | 300.34 | 351.52 |
| Depreciation | 5.87 | 6.60 | 6.64 | 6.84 | 6.35 | 10.55 | 12.35 | 14.45 | 16.91 | 19.79 |
| Accounts Receivable | - | - | - | - | - | - | - | - | - | - |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 26.16 | 12.59 | 31.05 | 37.19 | -15.20 | 22.50 | 26.34 | 30.82 | 36.08 |
| Capital Expenditure | -2.71 | -2.23 | -2.86 | -3.21 | -4.07 | -4.76 | -5.57 | -6.52 | -7.63 | -8.93 |
| UFCF | 83.08 | 142.53 | 134.30 | 154.25 | 208.14 | 177.93 | 248.53 | 290.88 | 340.45 | 398.46 |
| WACC | ||||||||||
| PV UFCF | 169.15 | 224.61 | 249.91 | 278.07 | 309.39 | |||||
| SUM PV UFCF | 1,231.13 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.19 |
| Free cash flow (t + 1) | 406.42 |
| Terminal Value | 12,740.58 |
| Present Value of Terminal Value | 9,892.74 |
Intrinsic Value
| Enterprise Value | 11,123.88 |
|---|---|
| Net Debt | 713.44 |
| Equity Value | 10,410.44 |
| Shares Outstanding | 56.49 |
| Equity Value Per Share | 184.29 |