Discounted Cash Flow (DCF) Analysis Unlevered
VersaBank (VB.TO)
$14.64
-0.06 (-%)
All numbers are in Millions, Currency in USD
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 | 43.84 | 51.69 | 53.92 | 54.19 | 65.36 | 72.44 | 80.28 | 88.98 | 98.61 | 109.29 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 43.07 | 55.05 | 62.95 | 59.87 | 61.85 | 76.29 | 84.55 | 93.71 | 103.86 | 115.11 |
| EBITDA (%) | ||||||||||
| EBIT | 42.51 | 54.43 | 62.23 | 58.72 | 60.12 | 75.05 | 83.18 | 92.19 | 102.17 | 113.24 |
| EBIT (%) | ||||||||||
| Depreciation | 0.55 | 0.62 | 0.72 | 1.15 | 1.73 | 1.24 | 1.38 | 1.53 | 1.69 | 1.87 |
| 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 | 159.91 | 129.78 | 139.14 | 257.64 | 271.52 | 255.67 | 283.37 | 314.06 | 348.07 | 385.77 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 6.31 | 7.39 | 7.16 | 6.81 | 10.84 | 10.30 | 11.42 | 12.66 | 14.03 | 15.55 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 92.51 | 99.63 | 100.98 | 100.30 | 117.66 | 138.53 | 153.53 | 170.16 | 188.59 | 209.01 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -2.24 | -0.99 | -0.24 | -0.25 | -0.01 | -1.15 | -1.28 | -1.42 | -1.57 | -1.74 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 14.64 |
|---|---|
| Beta | 1.061 |
| Diluted Shares Outstanding | 21.12 |
| Cost of Debt | |
| Tax Rate | 27.31 |
| After-tax Cost of Debt | 21.24% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.495 |
| Total Debt | 100.39 |
| Total Equity | 309.25 |
| Total Capital | 409.63 |
| Debt Weighting | 24.51 |
| Equity Weighting | 75.49 |
| 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 | 43.84 | 51.69 | 53.92 | 54.19 | 65.36 | 72.44 | 80.28 | 88.98 | 98.61 | 109.29 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 43.07 | 55.05 | 62.95 | 59.87 | 61.85 | 76.29 | 84.55 | 93.71 | 103.86 | 115.11 |
| EBIT | 42.51 | 54.43 | 62.23 | 58.72 | 60.12 | 75.05 | 83.18 | 92.19 | 102.17 | 113.24 |
| Tax Rate | -32.17% | 27.74% | 27.41% | 27.46% | 27.31% | 15.55% | 15.55% | 15.55% | 15.55% | 15.55% |
| EBIAT | 56.19 | 39.33 | 45.17 | 42.59 | 43.70 | 63.38 | 70.24 | 77.85 | 86.28 | 95.63 |
| Depreciation | 0.55 | 0.62 | 0.72 | 1.15 | 1.73 | 1.24 | 1.38 | 1.53 | 1.69 | 1.87 |
| Accounts Receivable | - | -1.07 | 0.23 | 0.35 | -4.03 | 0.54 | -1.12 | -1.24 | -1.37 | -1.52 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 7.12 | 1.35 | -0.69 | 17.36 | 20.87 | 15 | 16.63 | 18.43 | 20.43 |
| Capital Expenditure | -2.24 | -0.99 | -0.24 | -0.24 | -0.01 | -1.15 | -1.28 | -1.42 | -1.57 | -1.74 |
| UFCF | 54.50 | 45.01 | 47.23 | 43.16 | 58.74 | 84.87 | 84.23 | 93.35 | 103.46 | 114.67 |
| WACC | ||||||||||
| PV UFCF | 76.04 | 67.61 | 67.13 | 66.65 | 66.18 | |||||
| SUM PV UFCF | 343.61 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 11.62 |
| Free cash flow (t + 1) | 116.96 |
| Terminal Value | 1,215.84 |
| Present Value of Terminal Value | 701.72 |
Intrinsic Value
| Enterprise Value | 1,045.33 |
|---|---|
| Net Debt | -171.14 |
| Equity Value | 1,216.47 |
| Shares Outstanding | 21.12 |
| Equity Value Per Share | 57.59 |