Discounted Cash Flow (DCF) Analysis Unlevered
United Bankshares, Inc. (UBSI)
$34.01
+1.30 (+3.97%)
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 | 712.62 | 726.53 | 1,031.12 | 1,006.87 | 1,031.61 | 1,145.04 | 1,270.94 | 1,410.69 | 1,565.80 | 1,737.96 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 435.17 | 488.55 | 451.91 | 523.15 | 591.33 | 644.47 | 715.33 | 793.98 | 881.28 | 978.18 |
| EBITDA (%) | ||||||||||
| EBIT | 456.24 | 509.08 | 468.35 | 515.24 | 567.66 | 654.30 | 726.24 | 806.10 | 894.73 | 993.11 |
| EBIT (%) | ||||||||||
| Depreciation | -21.06 | -20.53 | -16.44 | 7.91 | 23.67 | -9.84 | -10.92 | -12.12 | -13.45 | -14.93 |
| 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 | 3,356.63 | 3,273.97 | 5,161.60 | 7,799.94 | 5,718.58 | 6,300.57 | 6,993.34 | 7,762.28 | 8,615.77 | 9,563.10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 60.60 | 58.08 | 66.83 | 64.51 | 94.89 | 88.36 | 98.08 | 108.86 | 120.83 | 134.12 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -5.78 | -11.08 | -19.03 | -15.38 | -14.72 | -16.34 | -18.14 | -20.13 | -22.35 | -24.80 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 34.01 |
|---|---|
| Beta | 1.045 |
| Diluted Shares Outstanding | 120.09 |
| Cost of Debt | |
| Tax Rate | 20.95 |
| After-tax Cost of Debt | 3.43% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.715 |
| Total Debt | 2,434.10 |
| Total Equity | 4,084.27 |
| Total Capital | 6,518.37 |
| Debt Weighting | 37.34 |
| Equity Weighting | 62.66 |
| 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 | 712.62 | 726.53 | 1,031.12 | 1,006.87 | 1,031.61 | 1,145.04 | 1,270.94 | 1,410.69 | 1,565.80 | 1,737.96 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 435.17 | 488.55 | 451.91 | 523.15 | 591.33 | 644.47 | 715.33 | 793.98 | 881.28 | 978.18 |
| EBIT | 456.24 | 509.08 | 468.35 | 515.24 | 567.66 | 654.30 | 726.24 | 806.10 | 894.73 | 993.11 |
| Tax Rate | 21.65% | 19.83% | 19.66% | 20.55% | 20.95% | 20.53% | 20.53% | 20.53% | 20.53% | 20.53% |
| EBIAT | 357.47 | 408.12 | 376.28 | 409.36 | 448.72 | 519.99 | 577.16 | 640.62 | 711.06 | 789.25 |
| Depreciation | -21.06 | -20.53 | -16.44 | 7.91 | 23.67 | -9.84 | -10.92 | -12.12 | -13.45 | -14.93 |
| Accounts Receivable | - | 2.51 | -8.75 | 2.32 | -30.38 | 6.53 | -9.72 | -10.78 | -11.97 | -13.29 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure | -5.78 | -11.08 | -19.02 | -15.38 | -14.72 | -16.34 | -18.14 | -20.13 | -22.35 | -24.80 |
| UFCF | 330.63 | 379.02 | 332.07 | 404.21 | 427.29 | 500.34 | 538.39 | 597.59 | 663.30 | 736.23 |
| WACC | ||||||||||
| PV UFCF | 468.75 | 472.55 | 491.38 | 510.97 | 531.34 | |||||
| SUM PV UFCF | 2,474.99 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.74 |
| Free cash flow (t + 1) | 750.95 |
| Terminal Value | 15,842.89 |
| Present Value of Terminal Value | 11,434 |
Intrinsic Value
| Enterprise Value | 13,909 |
|---|---|
| Net Debt | 1,257.45 |
| Equity Value | 12,651.55 |
| Shares Outstanding | 120.09 |
| Equity Value Per Share | 105.35 |