Discounted Cash Flow (DCF) Analysis Unlevered

Sandy Spring Bancorp, Inc. (SASR)

$42.3

+0.03 (+0.07%)
All numbers are in Millions, Currency in USD
Stock DCF: 237.91 | 42.3 | 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 220.01321.49336.63463.41523.89656.88823.641,032.741,294.911,623.65
Revenue (%)
EBITDA 121.94208.84248.82204.70351.95401.55503.50631.32791.59992.54
EBITDA (%)
EBIT 113.97196.33235.42184.82337.42377.17472.92592.98743.52932.28
EBIT (%)
Depreciation 7.9812.5213.4019.8714.5224.3830.5738.3348.0660.27
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 839.161,038.211,219.231,644.731,885.602,340.322,934.443,679.404,613.475,784.67
Total Cash (%)
Account Receivables 15.4824.6123.2846.4334.3550.1662.9078.8798.89123.99
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 3447.02118.92146.09132.52160.58201.35252.46316.55396.91
Accounts Payable (%)
Capital Expenditure -7.44-10.40-5.15-5.04-11.49-15.01-18.82-23.60-29.60-37.11
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 42.3
Beta 1.001
Diluted Shares Outstanding 47.09
Cost of Debt
Tax Rate 24.56
After-tax Cost of Debt 11.26%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.606
Total Debt 172.71
Total Equity 1,991.78
Total Capital 2,164.49
Debt Weighting 7.98
Equity Weighting 92.02
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 220.01321.49336.63463.41523.89656.88823.641,032.741,294.911,623.65
EBITDA 121.94208.84248.82204.70351.95401.55503.50631.32791.59992.54
EBIT 113.97196.33235.42184.82337.42377.17472.92592.98743.52932.28
Tax Rate 39.49%23.98%23.83%22.08%24.56%26.79%26.79%26.79%26.79%26.79%
EBIAT 68.96149.24179.32144.02254.54276.13346.23434.13544.34682.53
Depreciation 7.9812.5213.4019.8714.5224.3830.5738.3348.0660.27
Accounts Receivable --9.131.33-23.1512.08-15.81-12.73-15.97-20.02-25.10
Inventories ----------
Accounts Payable -13.0271.9027.16-13.5728.0640.7751.1164.0980.36
Capital Expenditure -7.44-10.40-5.15-5.04-11.49-15.01-18.82-23.60-29.60-37.11
UFCF 69.50155.24260.79162.87256.09297.75386.01484606.87760.94
WACC
PV UFCF 275.95331.55385.29447.73520.29
SUM PV UFCF 1,960.80

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.90
Free cash flow (t + 1) 776.16
Terminal Value 13,155.21
Present Value of Terminal Value 8,994.78

Intrinsic Value

Enterprise Value 10,955.58
Net Debt -247
Equity Value 11,202.58
Shares Outstanding 47.09
Equity Value Per Share 237.91