Discounted Cash Flow (DCF) Analysis Unlevered

Live Oak Bancshares, Inc. (LOB)

$32.82

-0.61 (-1.82%)
All numbers are in Millions, Currency in USD
Stock DCF: 70.52 | 32.82 | 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 177.29205.84205.98284.62441.98563.13717.48914.131,164.691,483.92
Revenue (%)
EBITDA 133.97117.03131.33162.76275.22355.48452.92577.06735.23936.75
EBITDA (%)
EBIT 123.69100.65111.36141.07240.88311.74397.18506.05644.75821.48
EBIT (%)
Depreciation 10.2816.3919.9721.6934.3343.7455.7371.0190.47115.27
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 391.63704.56674.051,053.761,098.011,699.612,165.462,758.993,515.214,478.70
Total Cash (%)
Account Receivables ----------
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable ----------
Accounts Payable (%)
Capital Expenditure -124.14-111.32-37.20-20.99-165.23-210.52-268.22-341.73-435.40-554.74
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 32.82
Beta 1.512
Diluted Shares Outstanding 41.77
Cost of Debt
Tax Rate 20.78
After-tax Cost of Debt 16.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.828
Total Debt 318.29
Total Equity 1,370.93
Total Capital 1,689.22
Debt Weighting 18.84
Equity Weighting 81.16
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 177.29205.84205.98284.62441.98563.13717.48914.131,164.691,483.92
EBITDA 133.97117.03131.33162.76275.22355.48452.92577.06735.23936.75
EBIT 123.69100.65111.36141.07240.88311.74397.18506.05644.75821.48
Tax Rate -2.28%-11.73%23.15%-25.65%20.78%0.85%0.85%0.85%0.85%0.85%
EBIAT 126.52112.4585.59177.26190.84309.09393.80501.74639.26814.48
Depreciation 10.2816.3919.9721.6934.3343.7455.7371.0190.47115.27
Accounts Receivable ----------
Inventories ----------
Accounts Payable ----------
Capital Expenditure -124.14-111.32-37.20-20.99-165.23-210.52-268.22-341.73-435.40-554.74
UFCF 12.6617.5268.36177.9559.94142.31181.32231.02294.34375.01
WACC
PV UFCF 127.28145.04165.27188.33214.61
SUM PV UFCF 840.53

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.81
Free cash flow (t + 1) 382.51
Terminal Value 3,899.23
Present Value of Terminal Value 2,231.39

Intrinsic Value

Enterprise Value 3,071.92
Net Debt 126.34
Equity Value 2,945.59
Shares Outstanding 41.77
Equity Value Per Share 70.52