Discounted Cash Flow (DCF) Analysis Unlevered

Pinnacle Financial Partners, Inc. (PNFP)

$72.8

+4.24 (+6.18%)
All numbers are in Millions, Currency in USD
Stock DCF: 262.01 | 72.8 | 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 620.05841.94896.28988.861,140.331,333.861,560.241,825.042,134.782,497.08
Revenue (%)
EBITDA 367.20636.72807.67615.81803.97954.351,116.321,305.771,527.391,786.61
EBITDA (%)
EBIT 390.82660.32799.33570.61750.72944.851,105.211,292.781,512.191,768.83
EBIT (%)
Depreciation -23.62-23.608.3445.2053.269.5011.1112.9915.2017.78
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 3,188.753,738.043,908.687,312.208,933.237,782.299,103.0710,64812,455.1414,568.98
Total Cash (%)
Account Receivables 57.4479.6684.46104.0898.81126.29147.72172.79202.12236.42
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 10.4823.5942.1824.9312.5034.1939.9946.7854.7264.01
Accounts Payable (%)
Capital Expenditure -53.50-23.74-42.15-39.76-23.18-59.23-69.29-81.05-94.80-110.89
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 72.8
Beta 1.193
Diluted Shares Outstanding 76.02
Cost of Debt
Tax Rate 19.11
After-tax Cost of Debt 6.09%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.757
Total Debt 1,311.85
Total Equity 5,534.60
Total Capital 6,846.45
Debt Weighting 19.16
Equity Weighting 80.84
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 620.05841.94896.28988.861,140.331,333.861,560.241,825.042,134.782,497.08
EBITDA 367.20636.72807.67615.81803.97954.351,116.321,305.771,527.391,786.61
EBIT 390.82660.32799.33570.61750.72944.851,105.211,292.781,512.191,768.83
Tax Rate 41.61%20.12%19.43%15.90%19.11%23.23%23.23%23.23%23.23%23.23%
EBIAT 228.18527.50644.05479.90607.25725.34848.44992.431,160.861,357.88
Depreciation -23.62-23.608.3445.2053.269.5011.1112.9915.2017.78
Accounts Receivable --22.22-4.81-19.625.26-27.47-21.43-25.07-29.33-34.30
Inventories ----------
Accounts Payable -13.1118.60-17.25-12.4321.695.806.797.949.29
Capital Expenditure -53.50-23.74-42.15-39.76-23.18-59.23-69.29-81.05-94.80-110.89
UFCF 151.06471.04624.03448.48630.17669.81774.63906.091,059.871,239.75
WACC
PV UFCF 618.76661.05714.31771.86834.05
SUM PV UFCF 3,600.04

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.25
Free cash flow (t + 1) 1,264.54
Terminal Value 20,232.68
Present Value of Terminal Value 13,611.75

Intrinsic Value

Enterprise Value 17,211.79
Net Debt -2,707.18
Equity Value 19,918.97
Shares Outstanding 76.02
Equity Value Per Share 262.01