Discounted Cash Flow (DCF) Analysis Unlevered

Macatawa Bank Corporation (MCBC)

$9.8

+0.11 (+1.14%)
All numbers are in Millions, Currency in USD
Stock DCF: 157,145.63 | 9.8 | undervalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 83.2285.5179.7613.67132.25390.291,151.763,398.9310,030.5029,600.77
Revenue (%)
EBITDA 41.6539.4138.4549.3853.75426.311,258.063,712.6310,956.2532,332.71
EBITDA (%)
EBIT 39.4436.7935.7247.8251.65409.041,207.103,562.2610,512.4831,023.12
EBIT (%)
Depreciation 2.212.622.721.562.1017.2750.96150.37443.771,309.59
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 257.19268.31439.73755.17483.295,512.8916,268.9448,010.86141,683.61418,118.85
Total Cash (%)
Account Receivables 4.875.624.097.618.9862.42184.20543.591,604.194,734.08
Account Receivables (%)
Inventories -280.06-791.90-1,158.22-765.12-492.27-6,777.48-20,000.86-59,024.03-174,184.28-514,030.76
Inventories (%)
Accounts Payable ----------
Accounts Payable (%)
Capital Expenditure -1.04-2.27-0.99-0.80-0.44-8.83-26.05-76.88-226.87-669.50
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 9.8
Beta 0.701
Diluted Shares Outstanding 34.36
Cost of Debt
Tax Rate 19.58
After-tax Cost of Debt 3.43%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.571
Total Debt 30.80
Total Equity 336.74
Total Capital 367.54
Debt Weighting 8.38
Equity Weighting 91.62
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 83.2285.5179.7613.67132.25390.291,151.763,398.9310,030.5029,600.77
EBITDA 41.6539.4138.4549.3853.75426.311,258.063,712.6310,956.2532,332.71
EBIT 39.4436.7935.7247.8251.65409.041,207.103,562.2610,512.4831,023.12
Tax Rate 18.92%18.00%18.78%19.35%19.58%18.93%18.93%18.93%18.93%18.93%
EBIAT 31.9830.1729.0138.5741.54331.62978.642,888.038,522.8025,151.40
Depreciation 2.212.622.721.562.1017.2750.96150.37443.771,309.59
Accounts Receivable --0.761.54-3.52-1.37-53.44-121.78-359.39-1,060.59-3,129.89
Inventories -511.83366.32-393.10-272.856,285.2113,223.3839,023.17115,160.26339,846.47
Accounts Payable ----------
Capital Expenditure -1.04-2.27-0.99-0.80-0.44-8.83-26.05-76.88-226.87-669.50
UFCF 33.15541.59398.60-357.29-231.026,571.8314,105.1441,625.30122,839.36362,508.08
WACC
PV UFCF 6,129.3012,269.4733,769.9292,946.78255,822.46
SUM PV UFCF 400,937.92

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.22
Free cash flow (t + 1) 369,758.24
Terminal Value 7,083,491.21
Present Value of Terminal Value 4,998,829.74

Intrinsic Value

Enterprise Value 5,399,767.66
Net Debt -1.52
Equity Value 5,399,769.18
Shares Outstanding 34.36
Equity Value Per Share 157,145.63