Discounted Cash Flow (DCF) Analysis Unlevered

SVB Financial Group (SIVB)

$106.04

0.00 (0.00%)

All numbers are in Millions, Currency in USD

Stock DCF: 1,997.37 | 106.04 | 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	2,601.02	3,259.50	3,919.85	5,917	5,673	6,983.48	8,596.69	10,582.55	13,027.16	16,036.47
Revenue (%)
EBITDA	1,459.23	1,858.07	1,842.12	2,745	3,870	3,836.88	4,723.21	5,814.29	7,157.41	8,810.79
EBITDA (%)
EBIT	1,401.32	1,775.35	1,741.28	2,594	3,260	3,548.58	4,368.32	5,377.41	6,619.61	8,148.77
EBIT (%)
Depreciation	57.91	82.72	100.84	151	610	288.29	354.89	436.87	537.79	662.02
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	11,237.97	20,507.36	48,360.35	41,840	39,872	51,746.20	63,699.74	78,414.59	96,528.62	118,827.05
Total Cash (%)
Account Receivables	253.73	264.62	281.56	1,928	3,082	1,563.86	1,925.11	2,369.82	2,917.26	3,591.15
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	-	-	-	-	-	-	-	-	-	-
Accounts Payable (%)
Capital Expenditure	-45.86	-65.48	-87.41	-118.38	-113.50	-139.72	-171.99	-211.72	-260.63	-320.84
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 106.04
Beta	1.569
Diluted Shares Outstanding	58.52
Cost of Debt
Tax Rate	30.52
After-tax Cost of Debt	4.27%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.901
Total Debt	19,348
Total Equity	6,205.57
Total Capital	25,553.57
Debt Weighting	75.72
Equity Weighting	24.28
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	2,601.02	3,259.50	3,919.85	5,917	5,673	6,983.48	8,596.69	10,582.55	13,027.16	16,036.47
EBITDA	1,459.23	1,858.07	1,842.12	2,745	3,870	3,836.88	4,723.21	5,814.29	7,157.41	8,810.79
EBIT	1,401.32	1,775.35	1,741.28	2,594	3,260	3,548.58	4,368.32	5,377.41	6,619.61	8,148.77
Tax Rate	28.55%	29.41%	30.63%	32.71%	30.52%	30.36%	30.36%	30.36%	30.36%	30.36%
EBIAT	1,001.29	1,253.30	1,207.95	1,745.52	2,264.89	2,471.13	3,041.97	3,744.67	4,609.70	5,674.56
Depreciation	57.91	82.72	100.84	151	610	288.29	354.89	436.87	537.79	662.02
Accounts Receivable	-	-10.89	-16.94	-1,646.44	-1,154	1,518.14	-361.26	-444.71	-547.44	-673.90
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	-	-	-	-	-	-	-	-	-
Capital Expenditure	-45.87	-65.48	-87.41	-118.38	-113.50	-139.72	-171.99	-211.72	-260.63	-320.84
UFCF	1,013.33	1,259.65	1,204.45	131.70	1,607.39	4,137.85	2,863.61	3,525.11	4,339.42	5,341.84
WACC
PV UFCF						3,908.05	2,554.38	2,969.83	3,452.84	4,014.41
SUM PV UFCF										16,899.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.88
Free cash flow (t + 1)	5,448.68
Terminal Value	140,429.94
Present Value of Terminal Value	105,533.43

Intrinsic Value

Enterprise Value	122,432.93
Net Debt	5,545
Equity Value	116,887.93
Shares Outstanding	58.52
Equity Value Per Share	1,997.37