Discounted Cash Flow (DCF) Analysis Unlevered
Investors Bancorp, Inc. (ISBC)
$13.87
-0.35 (-2.46%)
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 | 715.41 | 690.10 | 708.49 | 793.07 | 835.48 | 869.76 | 905.44 | 942.59 | 981.27 | 1,021.53 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 502.34 | 577.89 | 325.44 | 340.91 | 477.23 | 521.85 | 543.27 | 565.56 | 588.76 | 612.92 |
| EBITDA (%) | ||||||||||
| EBIT | 482.50 | 558.82 | 286.73 | 296.54 | 428.41 | 482.82 | 502.63 | 523.25 | 544.72 | 567.07 |
| EBIT (%) | ||||||||||
| Depreciation | 19.85 | 19.08 | 38.71 | 44.37 | 48.82 | 39.04 | 40.64 | 42.30 | 44.04 | 45.85 |
| 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 | 2,606.12 | 2,319.05 | 2,870.31 | 2,928.87 | 2,681.53 | 3,123.69 | 3,251.86 | 3,385.28 | 3,524.18 | 3,668.78 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 72.85 | 77.50 | 79.31 | 79.70 | 78.64 | 90.58 | 94.29 | 98.16 | 102.19 | 106.38 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -20.23 | -14.30 | -17.46 | -19.84 | -14.26 | -20.13 | -20.96 | -21.82 | -22.71 | -23.65 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 13.87 |
|---|---|
| Beta | 0.000 |
| Diluted Shares Outstanding | 236.44 |
| Cost of Debt | |
| Tax Rate | 26.86 |
| After-tax Cost of Debt | 3.28% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 4.564 |
| Total Debt | 3,298.60 |
| Total Equity | 3,279.37 |
| Total Capital | 6,577.97 |
| Debt Weighting | 50.15 |
| Equity Weighting | 49.85 |
| 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 | 715.41 | 690.10 | 708.49 | 793.07 | 835.48 | 869.76 | 905.44 | 942.59 | 981.27 | 1,021.53 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 502.34 | 577.89 | 325.44 | 340.91 | 477.23 | 521.85 | 543.27 | 565.56 | 588.76 | 612.92 |
| EBIT | 482.50 | 558.82 | 286.73 | 296.54 | 428.41 | 482.82 | 502.63 | 523.25 | 544.72 | 567.07 |
| Tax Rate | 54.83% | 25.09% | 31.82% | 25.28% | 26.86% | 32.78% | 32.78% | 32.78% | 32.78% | 32.78% |
| EBIAT | 217.95 | 418.62 | 195.48 | 221.58 | 313.33 | 324.57 | 337.89 | 351.75 | 366.18 | 381.21 |
| Depreciation | 19.85 | 19.08 | 38.71 | 44.37 | 48.82 | 39.04 | 40.64 | 42.30 | 44.04 | 45.85 |
| Accounts Receivable | - | -4.65 | -1.81 | -0.39 | 1.07 | -11.94 | -3.72 | -3.87 | -4.03 | -4.19 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure | -20.23 | -14.30 | -17.46 | -19.84 | -14.26 | -20.13 | -20.96 | -21.82 | -22.71 | -23.65 |
| UFCF | 217.56 | 418.75 | 214.92 | 245.72 | 348.96 | 331.53 | 353.85 | 368.37 | 383.48 | 399.22 |
| WACC | ||||||||||
| PV UFCF | 319.02 | 327.66 | 328.23 | 328.81 | 329.39 | |||||
| SUM PV UFCF | 1,633.12 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 3.92 |
| Free cash flow (t + 1) | 407.20 |
| Terminal Value | 21,208.31 |
| Present Value of Terminal Value | 17,498.89 |
Intrinsic Value
| Enterprise Value | 19,132.01 |
|---|---|
| Net Debt | 3,010.61 |
| Equity Value | 16,121.40 |
| Shares Outstanding | 236.44 |
| Equity Value Per Share | 68.19 |