Discounted Cash Flow (DCF) Analysis Unlevered
Fifth Third Bancorp (FITB)
$26.665
-0.14 (-0.54%)
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 | 6,807 | 8,203 | 7,491 | 7,799 | 8,295 | 8,757.45 | 9,245.67 | 9,761.12 | 10,305.30 | 10,879.82 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 4,168 | 3,674 | 2,289 | 3,866 | 4,507 | 4,211.99 | 4,446.81 | 4,694.72 | 4,956.45 | 5,232.77 |
| EBITDA (%) | ||||||||||
| EBIT | 3,808 | 3,202 | 1,797 | 3,517 | 4,071 | 3,733.11 | 3,941.23 | 4,160.95 | 4,392.92 | 4,637.83 |
| EBIT (%) | ||||||||||
| Depreciation | 360 | 472 | 492 | 349 | 436 | 478.89 | 505.58 | 533.77 | 563.53 | 594.94 |
| 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 | 36,784 | 41,256 | 74,059 | 75,676 | 62,449 | 65,770.92 | 69,437.64 | 73,308.78 | 77,395.73 | 81,710.53 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 3,600 | 3,363 | 2,915 | 3,052 | 2,704 | 3,582.29 | 3,782.01 | 3,992.85 | 4,215.45 | 4,450.46 |
| Account Receivables (%) | ||||||||||
| Inventories | 18 | 21.69 | 19.81 | 20.62 | 21.93 | 23.16 | 24.45 | 25.81 | 27.25 | 28.77 |
| Inventories (%) | ||||||||||
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -134 | -304 | -358 | -309 | -472 | -352.15 | -371.78 | -392.51 | -414.39 | -437.50 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 26.665 |
|---|---|
| Beta | 1.214 |
| Diluted Shares Outstanding | 694.95 |
| Cost of Debt | |
| Tax Rate | 20.92 |
| After-tax Cost of Debt | 4.17% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.211 |
| Total Debt | 18,552 |
| Total Equity | 18,530.90 |
| Total Capital | 37,082.90 |
| Debt Weighting | 50.03 |
| Equity Weighting | 49.97 |
| 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 | 6,807 | 8,203 | 7,491 | 7,799 | 8,295 | 8,757.45 | 9,245.67 | 9,761.12 | 10,305.30 | 10,879.82 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 4,168 | 3,674 | 2,289 | 3,866 | 4,507 | 4,211.99 | 4,446.81 | 4,694.72 | 4,956.45 | 5,232.77 |
| EBIT | 3,808 | 3,202 | 1,797 | 3,517 | 4,071 | 3,733.11 | 3,941.23 | 4,160.95 | 4,392.92 | 4,637.83 |
| Tax Rate | 20.69% | 21.55% | 20.59% | 21.24% | 20.92% | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% |
| EBIAT | 3,020.23 | 2,512 | 1,427 | 2,770 | 3,219.42 | 2,949.27 | 3,113.69 | 3,287.28 | 3,470.55 | 3,664.03 |
| Depreciation | 360 | 472 | 492 | 349 | 436 | 478.89 | 505.58 | 533.77 | 563.53 | 594.94 |
| Accounts Receivable | - | 237 | 448 | -137 | 348 | -878.29 | -199.71 | -210.85 | -222.60 | -235.01 |
| Inventories | - | -3.69 | 1.88 | -0.81 | -1.31 | -1.22 | -1.29 | -1.36 | -1.44 | -1.52 |
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure | -134 | -304 | -358 | -309 | -472 | -352.15 | -371.78 | -392.51 | -414.39 | -437.50 |
| UFCF | 3,246.23 | 2,913.31 | 2,010.88 | 2,672.19 | 3,530.11 | 2,196.49 | 3,046.49 | 3,216.33 | 3,395.64 | 3,584.95 |
| WACC | ||||||||||
| PV UFCF | 2,049.16 | 2,651.50 | 2,611.55 | 2,572.20 | 2,533.45 | |||||
| SUM PV UFCF | 12,417.86 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.19 |
| Free cash flow (t + 1) | 3,656.65 |
| Terminal Value | 70,455.67 |
| Present Value of Terminal Value | 49,790.28 |
Intrinsic Value
| Enterprise Value | 62,208.14 |
|---|---|
| Net Debt | 15,086 |
| Equity Value | 47,122.14 |
| Shares Outstanding | 694.95 |
| Equity Value Per Share | 67.81 |