Discounted Cash Flow (DCF) Analysis Unlevered

The Bank of N.T. Butterfield & Son ... (NTB)

$27.95

-1.18 (-4.05%)
All numbers are in Millions, Currency in USD
Stock DCF: 103.84 | 27.95 | undervalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 511531.89502.65497.61551.70563.36575.28587.44599.86612.54
Revenue (%)
EBITDA 267.54283.47246.44260.34217.70277.69283.56289.56295.68301.93
EBITDA (%)
EBIT 221.07235.08184.01190.88177.52219.26223.90228.63233.47238.40
EBIT (%)
Depreciation 46.4848.3962.4469.4640.1858.4359.6660.9262.2163.53
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 4,288.975,988.796,773.756,852.482,9855,893.926,018.546,145.796,275.746,408.43
Total Cash (%)
Account Receivables 20.8723.56144.79144.28217119.04121.55124.12126.75129.43
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 5.078.36203.86189.38278148.24151.38154.58157.85161.18
Accounts Payable (%)
Capital Expenditure -19.84-22.78-20.57-15.72-26.88-22.86-23.34-23.83-24.34-24.85
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 27.95
Beta 1.409
Diluted Shares Outstanding 50.58
Cost of Debt
Tax Rate 1.70
After-tax Cost of Debt 4.92%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.152
Total Debt 172
Total Equity 1,413.83
Total Capital 1,585.83
Debt Weighting 10.85
Equity Weighting 89.15
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 511531.89502.65497.61551.70563.36575.28587.44599.86612.54
EBITDA 267.54283.47246.44260.34217.70277.69283.56289.56295.68301.93
EBIT 221.07235.08184.01190.88177.52219.26223.90228.63233.47238.40
Tax Rate 0.65%-0.78%1.59%1.88%1.70%1.01%1.01%1.01%1.01%1.01%
EBIAT 219.62236.91181.08187.29174.51217.05221.64226.33231.11236
Depreciation 46.4848.3962.4469.4640.1858.4359.6660.9262.2163.53
Accounts Receivable --2.69-121.230.51-72.7297.96-2.52-2.57-2.62-2.68
Inventories ----------
Accounts Payable -3.29195.50-14.4888.62-129.763.133.203.273.34
Capital Expenditure -19.84-22.78-20.57-15.72-26.88-22.86-23.34-23.83-24.34-24.85
UFCF 246.26263.13297.21227.05203.71220.83258.58264.05269.63275.33
WACC
PV UFCF 201.52215.34200.67187174.26
SUM PV UFCF 978.79

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.58
Free cash flow (t + 1) 280.84
Terminal Value 3,704.95
Present Value of Terminal Value 2,344.91

Intrinsic Value

Enterprise Value 3,323.70
Net Debt -1,929
Equity Value 5,252.70
Shares Outstanding 50.58
Equity Value Per Share 103.84