Discounted Cash Flow (DCF) Analysis Unlevered

VersaBank (VB.TO)

$14.64

-0.06 (-%)
All numbers are in Millions, Currency in USD
Stock DCF: 57.59 | 14.64 | undervalue

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 43.8451.6953.9254.1965.3672.4480.2888.9898.61109.29
Revenue (%)
EBITDA 43.0755.0562.9559.8761.8576.2984.5593.71103.86115.11
EBITDA (%)
EBIT 42.5154.4362.2358.7260.1275.0583.1892.19102.17113.24
EBIT (%)
Depreciation 0.550.620.721.151.731.241.381.531.691.87
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 159.91129.78139.14257.64271.52255.67283.37314.06348.07385.77
Total Cash (%)
Account Receivables 6.317.397.166.8110.8410.3011.4212.6614.0315.55
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 92.5199.63100.98100.30117.66138.53153.53170.16188.59209.01
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 43.8451.6953.9254.1965.3672.4480.2888.9898.61109.29
EBITDA 43.0755.0562.9559.8761.8576.2984.5593.71103.86115.11
EBIT 42.5154.4362.2358.7260.1275.0583.1892.19102.17113.24
Tax Rate -32.17%27.74%27.41%27.46%27.31%15.55%15.55%15.55%15.55%15.55%
EBIAT 56.1939.3345.1742.5943.7063.3870.2477.8586.2895.63
Depreciation 0.550.620.721.151.731.241.381.531.691.87
Accounts Receivable --1.070.230.35-4.030.54-1.12-1.24-1.37-1.52
Inventories ----------
Accounts Payable -7.121.35-0.6917.3620.871516.6318.4320.43
Capital Expenditure -2.24-0.99-0.24-0.24-0.01-1.15-1.28-1.42-1.57-1.74
UFCF 54.5045.0147.2343.1658.7484.8784.2393.35103.46114.67
WACC
PV UFCF 76.0467.6167.1366.6566.18
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