Discounted Cash Flow (DCF) Analysis Unlevered
Mercantile Bank Corporation (MBWM)
$34.57
+0.13 (+0.38%)
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 | 128.75 | 139.09 | 151.49 | 167.42 | 179.22 | 194.69 | 211.49 | 229.73 | 249.56 | 271.09 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 72.24 | 83.49 | 103.82 | 90.34 | 106.83 | 116.12 | 126.14 | 137.02 | 148.85 | 161.69 |
| EBITDA (%) | ||||||||||
| EBIT | 61.88 | 73.72 | 94.26 | 80.91 | 93.15 | 102.64 | 111.49 | 121.11 | 131.56 | 142.91 |
| EBIT (%) | ||||||||||
| Depreciation | 10.36 | 9.77 | 9.55 | 9.43 | 13.68 | 13.49 | 14.65 | 15.91 | 17.29 | 18.78 |
| 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 | 535.85 | 412.72 | 568.39 | 1,013.35 | 1,567.90 | 1,000.01 | 1,086.29 | 1,180.02 | 1,281.83 | 1,392.43 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | - | - | - | - | - | - | - | - | - | - |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 14.20 | 25.23 | 22.41 | 24.31 | 24.64 | 28.13 | 30.56 | 33.19 | 36.06 | 39.17 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -5.42 | -6.32 | -13.48 | -8.99 | -5.60 | -10.18 | -11.06 | -12.02 | -13.05 | -14.18 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 34.57 |
|---|---|
| Beta | 1.008 |
| Diluted Shares Outstanding | 15.70 |
| Cost of Debt | |
| Tax Rate | 19.93 |
| After-tax Cost of Debt | 3.14% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.553 |
| Total Debt | 495.89 |
| Total Equity | 542.63 |
| Total Capital | 1,038.52 |
| Debt Weighting | 47.75 |
| Equity Weighting | 52.25 |
| 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 | 128.75 | 139.09 | 151.49 | 167.42 | 179.22 | 194.69 | 211.49 | 229.73 | 249.56 | 271.09 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 72.24 | 83.49 | 103.82 | 90.34 | 106.83 | 116.12 | 126.14 | 137.02 | 148.85 | 161.69 |
| EBIT | 61.88 | 73.72 | 94.26 | 80.91 | 93.15 | 102.64 | 111.49 | 121.11 | 131.56 | 142.91 |
| Tax Rate | 32.14% | 18.91% | 18.20% | 19.53% | 19.93% | 21.74% | 21.74% | 21.74% | 21.74% | 21.74% |
| EBIAT | 41.99 | 59.78 | 77.11 | 65.11 | 74.58 | 80.32 | 87.25 | 94.78 | 102.96 | 111.84 |
| Depreciation | 10.36 | 9.77 | 9.55 | 9.43 | 13.68 | 13.49 | 14.65 | 15.91 | 17.29 | 18.78 |
| Accounts Receivable | - | - | - | - | - | - | - | - | - | - |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 11.03 | -2.82 | 1.89 | 0.34 | 3.48 | 2.43 | 2.64 | 2.86 | 3.11 |
| Capital Expenditure | -5.42 | -6.32 | -13.48 | -8.99 | -5.60 | -10.18 | -11.06 | -12.02 | -13.05 | -14.18 |
| UFCF | 46.93 | 74.26 | 70.36 | 67.45 | 82.99 | 87.11 | 93.27 | 101.31 | 110.06 | 119.55 |
| WACC | ||||||||||
| PV UFCF | 82.61 | 83.88 | 86.40 | 89.01 | 91.69 | |||||
| SUM PV UFCF | 433.59 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.45 |
| Free cash flow (t + 1) | 121.94 |
| Terminal Value | 3,534.60 |
| Present Value of Terminal Value | 2,710.86 |
Intrinsic Value
| Enterprise Value | 3,144.45 |
|---|---|
| Net Debt | -479.27 |
| Equity Value | 3,623.72 |
| Shares Outstanding | 15.70 |
| Equity Value Per Share | 230.86 |