Discounted Cash Flow (DCF) Analysis Unlevered

Preferred Bank (PFBC)

$75.13

+0.53 (+0.71%)
All numbers are in Millions, Currency in USD
Stock DCF: 198.63 | 75.13 | 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 134.97163.01170.88180.21193.62212.26232.70255.10279.66306.58
Revenue (%)
EBITDA 109.37140.59174.83138.88160.88182.43200219.25240.36263.50
EBITDA (%)
EBIT 108.38139.63173.49136.97158.99180.68198.07217.14238.04260.96
EBIT (%)
Depreciation 0.990.951.341.911.891.761.932.112.322.54
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 635.02709.17739.29979.151,482.521,123.791,231.981,350.581,480.611,623.15
Total Cash (%)
Account Receivables 1414.2718.3323.6914.6521.4723.5325.8028.2831
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 3.836.843.321.250.714.264.675.125.626.16
Accounts Payable (%)
Capital Expenditure -1.36-2.77-6.09-1.50-0.60-3.15-3.45-3.78-4.14-4.54
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 75.13
Beta 1.149
Diluted Shares Outstanding 14.89
Cost of Debt
Tax Rate 28.83
After-tax Cost of Debt 10.50%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.113
Total Debt 170.62
Total Equity 1,118.33
Total Capital 1,288.95
Debt Weighting 13.24
Equity Weighting 86.76
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 134.97163.01170.88180.21193.62212.26232.70255.10279.66306.58
EBITDA 109.37140.59174.83138.88160.88182.43200219.25240.36263.50
EBIT 108.38139.63173.49136.97158.99180.68198.07217.14238.04260.96
Tax Rate 46.08%28.07%29.65%28.28%28.83%32.18%32.18%32.18%32.18%32.18%
EBIAT 58.44100.44122.0598.23113.14122.53134.32147.26161.43176.97
Depreciation 0.990.951.341.911.891.761.932.112.322.54
Accounts Receivable --0.26-4.06-5.369.05-6.82-2.07-2.27-2.48-2.72
Inventories ----------
Accounts Payable -3.01-3.51-2.08-0.533.550.410.450.490.54
Capital Expenditure -1.36-2.77-6.09-1.50-0.60-3.15-3.45-3.78-4.14-4.54
UFCF 58.07101.37109.7291.20122.95117.87131.15143.77157.61172.79
WACC
PV UFCF 107.84109.78110.11110.44110.77
SUM PV UFCF 548.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.30
Free cash flow (t + 1) 176.24
Terminal Value 2,414.29
Present Value of Terminal Value 1,547.71

Intrinsic Value

Enterprise Value 2,096.64
Net Debt -859.99
Equity Value 2,956.63
Shares Outstanding 14.89
Equity Value Per Share 198.63