Discounted Cash Flow (DCF) Analysis Unlevered

Mercantile Bank Corporation (MBWM)

$34.57

+0.13 (+0.38%)
All numbers are in Millions, Currency in USD
Stock DCF: 230.86 | 34.57 | 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 128.75139.09151.49167.42179.22194.69211.49229.73249.56271.09
Revenue (%)
EBITDA 72.2483.49103.8290.34106.83116.12126.14137.02148.85161.69
EBITDA (%)
EBIT 61.8873.7294.2680.9193.15102.64111.49121.11131.56142.91
EBIT (%)
Depreciation 10.369.779.559.4313.6813.4914.6515.9117.2918.78
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 535.85412.72568.391,013.351,567.901,000.011,086.291,180.021,281.831,392.43
Total Cash (%)
Account Receivables ----------
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 14.2025.2322.4124.3124.6428.1330.5633.1936.0639.17
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 128.75139.09151.49167.42179.22194.69211.49229.73249.56271.09
EBITDA 72.2483.49103.8290.34106.83116.12126.14137.02148.85161.69
EBIT 61.8873.7294.2680.9193.15102.64111.49121.11131.56142.91
Tax Rate 32.14%18.91%18.20%19.53%19.93%21.74%21.74%21.74%21.74%21.74%
EBIAT 41.9959.7877.1165.1174.5880.3287.2594.78102.96111.84
Depreciation 10.369.779.559.4313.6813.4914.6515.9117.2918.78
Accounts Receivable ----------
Inventories ----------
Accounts Payable -11.03-2.821.890.343.482.432.642.863.11
Capital Expenditure -5.42-6.32-13.48-8.99-5.60-10.18-11.06-12.02-13.05-14.18
UFCF 46.9374.2670.3667.4582.9987.1193.27101.31110.06119.55
WACC
PV UFCF 82.6183.8886.4089.0191.69
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