Discounted Cash Flow (DCF) Analysis Unlevered
First Horizon Corporation (FHN)
$21.8
-0.06 (-0.27%)
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 | 1,303.04 | 1,886.84 | 1,818.20 | 3,098 | 2,991 | 3,799.31 | 4,826.07 | 6,130.32 | 7,787.03 | 9,891.46 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 488.45 | 1,101.44 | 1,056.97 | 1,249 | 1,554 | 1,871.28 | 2,376.99 | 3,019.37 | 3,835.35 | 4,871.85 |
| EBITDA (%) | ||||||||||
| EBIT | 445.02 | 1,028.35 | 988.35 | 1,157 | 1,437 | 1,735.55 | 2,204.58 | 2,800.37 | 3,557.17 | 4,518.48 |
| EBIT (%) | ||||||||||
| Depreciation | 43.43 | 73.09 | 68.62 | 92 | 117 | 135.73 | 172.41 | 219 | 278.18 | 353.36 |
| 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 | 6,994.93 | 6,685.37 | 5,561.54 | 17,601 | 24,761 | 19,703.28 | 25,028.06 | 31,791.87 | 40,383.58 | 51,297.20 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 68.69 | 38.86 | 40.11 | 98.49 | 95.09 | 120.79 | 153.43 | 194.89 | 247.56 | 314.47 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -53.05 | -47.99 | -49.16 | -58 | -53 | -98.49 | -125.11 | -158.92 | -201.87 | -256.43 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 21.8 |
|---|---|
| Beta | 1.153 |
| Diluted Shares Outstanding | 542 |
| Cost of Debt | |
| Tax Rate | 22.20 |
| After-tax Cost of Debt | 5.17% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.333 |
| Total Debt | 2,467 |
| Total Equity | 11,815.60 |
| Total Capital | 14,282.60 |
| Debt Weighting | 17.27 |
| Equity Weighting | 82.73 |
| 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 | 1,303.04 | 1,886.84 | 1,818.20 | 3,098 | 2,991 | 3,799.31 | 4,826.07 | 6,130.32 | 7,787.03 | 9,891.46 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 488.45 | 1,101.44 | 1,056.97 | 1,249 | 1,554 | 1,871.28 | 2,376.99 | 3,019.37 | 3,835.35 | 4,871.85 |
| EBIT | 445.02 | 1,028.35 | 988.35 | 1,157 | 1,437 | 1,735.55 | 2,204.58 | 2,800.37 | 3,557.17 | 4,518.48 |
| Tax Rate | 46.41% | 23.68% | 24.72% | 9.43% | 22.20% | 25.29% | 25.29% | 25.29% | 25.29% | 25.29% |
| EBIAT | 238.47 | 784.88 | 744.07 | 1,047.87 | 1,118.04 | 1,296.69 | 1,647.12 | 2,092.25 | 2,657.68 | 3,375.91 |
| Depreciation | 43.43 | 73.09 | 68.62 | 92 | 117 | 135.73 | 172.41 | 219 | 278.18 | 353.36 |
| Accounts Receivable | - | 29.83 | -1.25 | -58.38 | 3.40 | -25.70 | -32.64 | -41.46 | -52.67 | -66.90 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure | -53.05 | -47.99 | -49.16 | -58 | -53 | -98.49 | -125.11 | -158.92 | -201.87 | -256.43 |
| UFCF | 228.86 | 839.82 | 762.27 | 1,023.50 | 1,185.44 | 1,308.22 | 1,661.77 | 2,110.86 | 2,681.32 | 3,405.94 |
| WACC | ||||||||||
| PV UFCF | 1,213.68 | 1,430.26 | 1,685.48 | 1,986.25 | 2,340.70 | |||||
| SUM PV UFCF | 8,656.37 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.79 |
| Free cash flow (t + 1) | 3,474.06 |
| Terminal Value | 60,001.09 |
| Present Value of Terminal Value | 41,235.07 |
Intrinsic Value
| Enterprise Value | 49,891.45 |
|---|---|
| Net Debt | -13,587 |
| Equity Value | 63,478.45 |
| Shares Outstanding | 542 |
| Equity Value Per Share | 117.12 |