Discounted Cash Flow (DCF) Analysis Unlevered

Huntington Bancshares Incorporated (HBANN)

$25.09

-0.02 (-0.08%)
All numbers are in Millions, Currency in USD
Stock DCF: 41.52 | 25.09 | undervalue

Operating Data

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 3,519.054,3074,5104,6674,8365,249.565,698.486,185.806,714.787,289.01
Revenue (%)
EBITDA 1,562.332,2382,8813,0339162,563.552,782.773,020.753,279.073,559.49
EBITDA (%)
EBIT 1,182.561,8252,3882,6475492,068.282,245.162,437.152,645.572,871.81
EBIT (%)
Depreciation 379.77413493386367495.26537.62583.59633.50687.67
Depreciation (%)

Balance Sheet Data

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Total Cash 2,228.822,2782,9101,5011,1242,479.412,691.442,921.603,171.453,442.66
Total Cash (%)
Account Receivables 2,062.982,1512,448.142,533.372,625.102,849.593,093.283,357.813,644.953,956.66
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable ----------
Accounts Payable (%)
Capital Expenditure -120.44-194-110-107-119-158.74-172.31-187.05-203.04-220.41
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 25.09
Beta 1.320
Diluted Shares Outstanding 1,090.02
Cost of Debt
Tax Rate 15.95
After-tax Cost of Debt -3.34%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.925
Total Debt 10,643
Total Equity 27,348.60
Total Capital 37,991.60
Debt Weighting 28.01
Equity Weighting 71.99
Wacc

Build Up Free Cash

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 3,519.054,3074,5104,6674,8365,249.565,698.486,185.806,714.787,289.01
EBITDA 1,562.332,2382,8813,0339162,563.552,782.773,020.753,279.073,559.49
EBIT 1,182.561,8252,3882,6475492,068.282,245.162,437.152,645.572,871.81
Tax Rate 22.61%14.92%14.43%14.95%15.95%16.57%16.57%16.57%16.57%16.57%
EBIAT 915.201,552.692,043.292,251.31461.451,725.531,873.092,033.272,207.152,395.90
Depreciation 379.77413493386367495.26537.62583.59633.50687.67
Accounts Receivable --88.02-297.14-85.22-91.74-224.49-243.69-264.53-287.15-311.70
Inventories ----------
Accounts Payable ----------
Capital Expenditure -120.44-194-110-107-119-158.74-172.31-187.05-203.04-220.41
UFCF 1,174.541,683.672,129.152,445.08617.721,837.571,994.712,165.292,350.462,551.46
WACC
PV UFCF 1,730.131,768.271,807.261,847.101,887.83
SUM PV UFCF 9,040.58

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.21
Free cash flow (t + 1) 2,602.49
Terminal Value 61,816.87
Present Value of Terminal Value 45,738.29

Intrinsic Value

Enterprise Value 54,778.87
Net Debt 9,519
Equity Value 45,259.87
Shares Outstanding 1,090.02
Equity Value Per Share 41.52