Discounted Cash Flow (DCF) Analysis Unlevered

Huntington Bancshares Incorporated (HBANO)

$25.02

+0.02 (+0.08%)
All numbers are in Millions, Currency in USD
Stock DCF: 89.05 | 25.02 | 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 2,369.323,0023,1893,2134,8155,820.677,036.398,506.0210,282.6112,430.26
Revenue (%)
EBITDA 1,562.332,2382,8813,0331,7624,212.125,091.876,155.367,440.998,995.13
EBITDA (%)
EBIT 1,182.561,8252,3882,6471,3953,456.814,178.815,051.606,106.697,382.14
EBIT (%)
Depreciation 379.77413493386367755.31913.061,103.761,334.301,612.98
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 16,947.6116,98914,88815,19423,19731,463.3938,034.9045,978.9555,582.2167,191.23
Total Cash (%)
Account Receivables ----------
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable ----------
Accounts Payable (%)
Capital Expenditure -120.44-194-110-107-220.59-266.66-322.36-389.69-471.08-569.47
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 25.02
Beta 1.345
Diluted Shares Outstanding 1,017.05
Cost of Debt
Tax Rate 15.95
After-tax Cost of Debt 4.17%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.155
Total Debt 8,535
Total Equity 25,446.64
Total Capital 33,981.64
Debt Weighting 25.12
Equity Weighting 74.88
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 2,369.323,0023,1893,2134,8155,820.677,036.398,506.0210,282.6112,430.26
EBITDA 1,562.332,2382,8813,0331,7624,212.125,091.876,155.367,440.998,995.13
EBIT 1,182.561,8252,3882,6471,3953,456.814,178.815,051.606,106.697,382.14
Tax Rate 22.61%14.92%14.43%14.95%15.95%16.57%16.57%16.57%16.57%16.57%
EBIAT 915.201,552.692,043.292,251.311,172.552,883.953,486.304,214.465,094.706,158.78
Depreciation 379.77413493386367755.31913.061,103.761,334.301,612.98
Accounts Receivable ----------
Inventories ----------
Accounts Payable ----------
Capital Expenditure -120.44-194-110-107-220.59-266.66-322.36-389.69-471.08-569.47
UFCF 1,174.541,771.692,426.292,530.311,318.963,372.604,0774,928.535,957.927,202.30
WACC
PV UFCF 3,104.093,453.683,842.634,275.394,756.88
SUM PV UFCF 19,432.67

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.65
Free cash flow (t + 1) 7,346.35
Terminal Value 110,471.38
Present Value of Terminal Value 72,962.74

Intrinsic Value

Enterprise Value 92,395.41
Net Debt 1,823
Equity Value 90,572.41
Shares Outstanding 1,017.05
Equity Value Per Share 89.05