Discounted Cash Flow (DCF) Analysis Unlevered

Shore Bancshares, Inc. (SHBI)

$11.59

-0.07 (-0.60%)
All numbers are in Millions, Currency in USD
Stock DCF: 44.93 | 11.59 | undervalue

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 68.9960.1563.3577.63124.39147.80175.62208.67247.94294.61
Revenue (%)
EBITDA 37.9522.4121.5821.9156.6759.1670.2983.5299.24117.92
EBITDA (%)
EBIT 35.6520.0219.1018.8350.8153.2763.3075.2189.37106.19
EBIT (%)
Depreciation 2.302.392.483.095.865.886.998.319.8711.73
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 221.66217.76326.49700.60139.09654.17777.29923.591,097.421,303.96
Total Cash (%)
Account Receivables 3.343.636.777.339.4611.4213.5716.1219.1522.76
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 0.600.330.653.441.342.352.793.323.944.69
Accounts Payable (%)
Capital Expenditure -1.13-2.24-2.37-3.45-2.42-4.58-5.45-6.47-7.69-9.14
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 11.59
Beta 0.961
Diluted Shares Outstanding 19.85
Cost of Debt
Tax Rate 26.02
After-tax Cost of Debt 9.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.787
Total Debt 92.98
Total Equity 230.03
Total Capital 323.01
Debt Weighting 28.79
Equity Weighting 71.21
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 68.9960.1563.3577.63124.39147.80175.62208.67247.94294.61
EBITDA 37.9522.4121.5821.9156.6759.1670.2983.5299.24117.92
EBIT 35.6520.0219.1018.8350.8153.2763.3075.2189.37106.19
Tax Rate 29.19%26.02%25.26%27.44%26.02%26.78%26.78%26.78%26.78%26.78%
EBIAT 25.2414.8114.2813.6637.593946.3455.0765.4377.75
Depreciation 2.302.392.483.095.865.886.998.319.8711.73
Accounts Receivable --0.29-3.14-0.56-2.12-1.96-2.15-2.55-3.03-3.61
Inventories ----------
Accounts Payable --0.270.322.79-2.101.010.440.530.620.74
Capital Expenditure -1.13-2.24-2.38-3.45-2.42-4.58-5.45-6.47-7.69-9.14
UFCF 26.4114.4011.5515.5236.8239.3546.1854.8765.2077.47
WACC
PV UFCF 36.0638.7842.2245.9750.05
SUM PV UFCF 213.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.13
Free cash flow (t + 1) 79.02
Terminal Value 1,108.30
Present Value of Terminal Value 716.04

Intrinsic Value

Enterprise Value 929.12
Net Debt 37.48
Equity Value 891.64
Shares Outstanding 19.85
Equity Value Per Share 44.93