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
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 | 511 | 531.89 | 502.65 | 497.61 | 551.70 | 563.36 | 575.28 | 587.44 | 599.86 | 612.54 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 267.54 | 283.47 | 246.44 | 260.34 | 217.70 | 277.69 | 283.56 | 289.56 | 295.68 | 301.93 |
| EBITDA (%) | ||||||||||
| EBIT | 221.07 | 235.08 | 184.01 | 190.88 | 177.52 | 219.26 | 223.90 | 228.63 | 233.47 | 238.40 |
| EBIT (%) | ||||||||||
| Depreciation | 46.48 | 48.39 | 62.44 | 69.46 | 40.18 | 58.43 | 59.66 | 60.92 | 62.21 | 63.53 |
| 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 | 4,288.97 | 5,988.79 | 6,773.75 | 6,852.48 | 2,985 | 5,893.92 | 6,018.54 | 6,145.79 | 6,275.74 | 6,408.43 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 20.87 | 23.56 | 144.79 | 144.28 | 217 | 119.04 | 121.55 | 124.12 | 126.75 | 129.43 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 5.07 | 8.36 | 203.86 | 189.38 | 278 | 148.24 | 151.38 | 154.58 | 157.85 | 161.18 |
| 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 | 511 | 531.89 | 502.65 | 497.61 | 551.70 | 563.36 | 575.28 | 587.44 | 599.86 | 612.54 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 267.54 | 283.47 | 246.44 | 260.34 | 217.70 | 277.69 | 283.56 | 289.56 | 295.68 | 301.93 |
| EBIT | 221.07 | 235.08 | 184.01 | 190.88 | 177.52 | 219.26 | 223.90 | 228.63 | 233.47 | 238.40 |
| Tax Rate | 0.65% | -0.78% | 1.59% | 1.88% | 1.70% | 1.01% | 1.01% | 1.01% | 1.01% | 1.01% |
| EBIAT | 219.62 | 236.91 | 181.08 | 187.29 | 174.51 | 217.05 | 221.64 | 226.33 | 231.11 | 236 |
| Depreciation | 46.48 | 48.39 | 62.44 | 69.46 | 40.18 | 58.43 | 59.66 | 60.92 | 62.21 | 63.53 |
| Accounts Receivable | - | -2.69 | -121.23 | 0.51 | -72.72 | 97.96 | -2.52 | -2.57 | -2.62 | -2.68 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 3.29 | 195.50 | -14.48 | 88.62 | -129.76 | 3.13 | 3.20 | 3.27 | 3.34 |
| Capital Expenditure | -19.84 | -22.78 | -20.57 | -15.72 | -26.88 | -22.86 | -23.34 | -23.83 | -24.34 | -24.85 |
| UFCF | 246.26 | 263.13 | 297.21 | 227.05 | 203.71 | 220.83 | 258.58 | 264.05 | 269.63 | 275.33 |
| WACC | ||||||||||
| PV UFCF | 201.52 | 215.34 | 200.67 | 187 | 174.26 | |||||
| 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 |