Discounted Cash Flow (DCF) Analysis Unlevered

Pacific Mercantile Bancorp (PMBC)

$9.4

-0.11 (-1.16%)
All numbers are in Millions, Currency in USD
Stock DCF: 30.16 | 9.4 | undervalue

Operating Data

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 38.0947.6652.7954.5157.7364.2371.4779.5288.4898.45
Revenue (%)
EBITDA -11.8518.6230.6124.3621.4118.9821.1123.4926.1429.08
EBITDA (%)
EBIT -12.3318.1930.2123.9421.0418.4220.4922.8025.3728.23
EBIT (%)
Depreciation 0.480.430.410.420.370.560.620.690.770.86
Depreciation (%)

Balance Sheet Data

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Total Cash 185.99240.87221.37250.90330.05314.11349.50388.87432.68481.43
Total Cash (%)
Account Receivables 2.703.8744.095.675.165.746.387.107.90
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 0.200.400.360.400.190.400.440.490.550.61
Accounts Payable (%)
Capital Expenditure 0.76-0.270.831.11-0.300.580.640.720.800.89
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 9.4
Beta 0.933
Diluted Shares Outstanding 23.52
Cost of Debt
Tax Rate 32.91
After-tax Cost of Debt 21.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.364
Total Debt 27.53
Total Equity 221.05
Total Capital 248.58
Debt Weighting 11.07
Equity Weighting 88.93
Wacc

Build Up Free Cash

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 38.0947.6652.7954.5157.7364.2371.4779.5288.4898.45
EBITDA -11.8518.6230.6124.3621.4118.9821.1123.4926.1429.08
EBIT -12.3318.1930.2123.9421.0418.4220.4922.8025.3728.23
Tax Rate -94.50%-0.88%-64.82%27.32%32.91%-20.00%-20.00%-20.00%-20.00%-20.00%
EBIAT -23.9918.3549.7917.4014.1122.1024.5927.3630.4433.87
Depreciation 0.480.430.410.420.370.560.620.690.770.86
Accounts Receivable --1.17-0.13-0.09-1.570.51-0.58-0.65-0.72-0.80
Inventories ----------
Accounts Payable -0.20-0.040.04-0.210.210.040.050.060.06
Capital Expenditure 0.76-0.270.831.11-0.300.580.640.720.800.89
UFCF -22.7517.5450.8518.8712.4023.9625.3228.1731.3534.88
WACC
PV UFCF 22.0121.3621.8322.3122.80
SUM PV UFCF 110.31

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.87
Free cash flow (t + 1) 35.57
Terminal Value 517.82
Present Value of Terminal Value 338.56

Intrinsic Value

Enterprise Value 448.87
Net Debt -260.34
Equity Value 709.21
Shares Outstanding 23.52
Equity Value Per Share 30.16