Discounted Cash Flow (DCF) Analysis Unlevered
ServisFirst Bancshares, Inc. (SFBS)
$45.01
+3.64 (+8.80%)
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 | 276.65 | 304.97 | 362.91 | 405.63 | 559.31 | 669.63 | 801.70 | 959.83 | 1,149.14 | 1,375.79 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 236.44 | 293.97 | 269.30 | 289.54 | 401.31 | 534.62 | 640.07 | 766.31 | 917.46 | 1,098.41 |
| EBITDA (%) | ||||||||||
| EBIT | 232.79 | 290.02 | 265.19 | 285.15 | 397.19 | 527.17 | 631.15 | 755.63 | 904.67 | 1,083.10 |
| EBIT (%) | ||||||||||
| Depreciation | 3.65 | 3.95 | 4.10 | 4.39 | 4.12 | 7.45 | 8.92 | 10.68 | 12.79 | 15.31 |
| 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 | 1,048.23 | 1,289.53 | 3,096.33 | 5,006.29 | 751.13 | 4,049.17 | 4,847.81 | 5,803.96 | 6,948.70 | 8,319.22 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 24.07 | 26.26 | 36.84 | 34.83 | 48.42 | 59.88 | 71.68 | 85.82 | 102.75 | 123.02 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 10.38 | 11.93 | 12.32 | 13.62 | 20.16 | 24.14 | 28.90 | 34.60 | 41.42 | 49.59 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -2.30 | -2.36 | -2.30 | -9.45 | -6.39 | -7.65 | -9.16 | -10.96 | -13.12 | -15.71 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 45.01 |
|---|---|
| Beta | 0.850 |
| Diluted Shares Outstanding | 54.22 |
| Cost of Debt | |
| Tax Rate | 18.58 |
| After-tax Cost of Debt | 4.07% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.703 |
| Total Debt | - |
| Total Equity | 2,440.55 |
| Total Capital | 2,440.55 |
| Debt Weighting | 0.00 |
| Equity Weighting | 100.00 |
| 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 | 276.65 | 304.97 | 362.91 | 405.63 | 559.31 | 669.63 | 801.70 | 959.83 | 1,149.14 | 1,375.79 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 236.44 | 293.97 | 269.30 | 289.54 | 401.31 | 534.62 | 640.07 | 766.31 | 917.46 | 1,098.41 |
| EBIT | 232.79 | 290.02 | 265.19 | 285.15 | 397.19 | 527.17 | 631.15 | 755.63 | 904.67 | 1,083.10 |
| Tax Rate | 18.89% | 20.13% | 20.84% | 18.00% | 18.58% | 19.29% | 19.29% | 19.29% | 19.29% | 19.29% |
| EBIAT | 188.81 | 231.63 | 209.93 | 233.81 | 323.38 | 425.48 | 509.40 | 609.87 | 730.16 | 874.17 |
| Depreciation | 3.65 | 3.95 | 4.10 | 4.39 | 4.12 | 7.45 | 8.92 | 10.68 | 12.79 | 15.31 |
| Accounts Receivable | - | -2.19 | -10.58 | 2.01 | -13.59 | -11.45 | -11.81 | -14.14 | -16.93 | -20.27 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 1.55 | 0.39 | 1.30 | 6.54 | 3.98 | 4.76 | 5.70 | 6.82 | 8.17 |
| Capital Expenditure | -2.30 | -2.36 | -2.31 | -9.45 | -6.39 | -7.65 | -9.16 | -10.96 | -13.12 | -15.71 |
| UFCF | 190.15 | 232.59 | 201.54 | 232.06 | 314.07 | 417.81 | 502.11 | 601.15 | 719.71 | 861.67 |
| WACC | ||||||||||
| PV UFCF | 387.93 | 432.88 | 481.21 | 534.93 | 594.65 | |||||
| SUM PV UFCF | 2,431.61 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.70 |
| Free cash flow (t + 1) | 878.90 |
| Terminal Value | 15,419.30 |
| Present Value of Terminal Value | 10,641.09 |
Intrinsic Value
| Enterprise Value | 13,072.70 |
|---|---|
| Net Debt | -106.32 |
| Equity Value | 13,179.01 |
| Shares Outstanding | 54.22 |
| Equity Value Per Share | 243.05 |