Discounted Cash Flow (DCF) Analysis Unlevered

First Horizon Corporation (FHN)

$21.8

-0.06 (-0.27%)
All numbers are in Millions, Currency in USD
Stock DCF: 117.12 | 21.8 | 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 1,303.041,886.841,818.203,0982,9913,799.314,826.076,130.327,787.039,891.46
Revenue (%)
EBITDA 488.451,101.441,056.971,2491,5541,871.282,376.993,019.373,835.354,871.85
EBITDA (%)
EBIT 445.021,028.35988.351,1571,4371,735.552,204.582,800.373,557.174,518.48
EBIT (%)
Depreciation 43.4373.0968.6292117135.73172.41219278.18353.36
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 6,994.936,685.375,561.5417,60124,76119,703.2825,028.0631,791.8740,383.5851,297.20
Total Cash (%)
Account Receivables 68.6938.8640.1198.4995.09120.79153.43194.89247.56314.47
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 1,303.041,886.841,818.203,0982,9913,799.314,826.076,130.327,787.039,891.46
EBITDA 488.451,101.441,056.971,2491,5541,871.282,376.993,019.373,835.354,871.85
EBIT 445.021,028.35988.351,1571,4371,735.552,204.582,800.373,557.174,518.48
Tax Rate 46.41%23.68%24.72%9.43%22.20%25.29%25.29%25.29%25.29%25.29%
EBIAT 238.47784.88744.071,047.871,118.041,296.691,647.122,092.252,657.683,375.91
Depreciation 43.4373.0968.6292117135.73172.41219278.18353.36
Accounts Receivable -29.83-1.25-58.383.40-25.70-32.64-41.46-52.67-66.90
Inventories ----------
Accounts Payable ----------
Capital Expenditure -53.05-47.99-49.16-58-53-98.49-125.11-158.92-201.87-256.43
UFCF 228.86839.82762.271,023.501,185.441,308.221,661.772,110.862,681.323,405.94
WACC
PV UFCF 1,213.681,430.261,685.481,986.252,340.70
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