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Discounted Cash Flow (DCF) Analysis Unlevered


Bank of America Corporation

Bank of America Corporation (BAC)

Financial Services

Operating Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 88,942.0085,891.2982,962.4083,700.7687,350.1191,245.9391,766.0392,289.1092,815.1593,344.1993,876.25
Revenue (%)
EBITDA 18,855.7010,487.3324,573.4627,261.3431,315.0236,644.3726,245.0926,394.6826,545.1326,696.4426,848.61
EBITDA (%)
EBIT 16,169.667,962.1222,184.1425,018.1629,209.8834,582.2123,767.4023,902.8824,039.1224,176.1524,313.95
EBIT (%)
Depreciation 2,686.052,525.202,389.322,243.182,105.142,062.162,477.682,491.812,506.012,520.292,534.66
Depreciation (%)

Balance Sheet Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Total Cash --559,805.36563,908.77605,231.48711,736.50647,271.71650,961.15654,671.63658,403.26662,156.16
Total Cash (%)
Account Receivables 59,448.8361,841.7358,314.2758,757.9361,625.5165,815.6964,539.0564,906.9265,276.8965,648.9766,023.17
Account Receivables (%)
Inventories -----------
Inventories (%)
Accounts Payable -----------
Accounts Payable (%)
Capital Expenditure -----------
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 27
Diluted Shares Outstanding 10,236.90
Cost of Debt
Tax Rate 18.61
After-tax Cost of Debt -0.88
Risk-Free Rate
Market Risk Premium
Cost of Equity 14.30
Total Debt 191,365.00
Total Equity 276,396.30
Total Capital 467,761.30
Debt Weighting 40.91
Equity Weighting 59.09
Wacc

Build Up Free Cash

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 88,942.0085,891.2982,962.4083,700.7687,350.1191,245.9391,766.0392,289.1092,815.1593,344.1993,876.25
EBITDA 18,855.7010,487.3324,573.4627,261.3431,315.0236,644.3726,245.0926,394.6826,545.1326,696.4426,848.61
EBIT 16,169.667,962.1222,184.1425,018.1629,209.8834,582.2123,767.4023,902.8824,039.1224,176.1524,313.95
Tax Rate 29.32%30.68%28.29%28.77%37.59%18.61%28.88%28.88%28.88%28.88%28.88%
EBIAT 11,429.345,519.3915,907.9517,819.9818,230.0528,145.5416,904.1417,000.4917,097.4017,194.8517,292.86
Depreciation 2,686.052,525.202,389.322,243.182,105.142,062.162,477.682,491.812,506.012,520.292,534.66
Accounts Receivable --2,392.903,527.46-443.67-2,867.57-4,190.181,276.64-367.87-369.97-372.08-374.20
Inventories -----------
Accounts Payable -----------
Capital Expenditure -----------
UFCF 14,115.395,651.7021,824.7319,619.4917,467.6226,017.5220,658.4619,124.4319,233.4319,343.0719,453.32
WACC
PV UFCF 18,761.6615,773.7514,407.1013,158.8612,018.77
SUM PV UFCF 114,154.98

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.11
Free cash flow (t + 1) 20,231.45
Terminal Value 331,120.36
Present Value of Terminal Value 204,574.77

Intrinsic Value

Enterprise Value 318,729.75
Net Debt -520,371.50
Equity Value 839,101.26
Shares Outstanding 10,236.90
Equity Value Per Share 81.97

Results Unlevered DCF

Wacc / Long-term Growth -4 (%)-3 (%)-2 (%)-1 (%)0 (%)1 (%)2 (%)3 (%)4 (%)
12.11 (%) 72.18 Buy 73.22 Buy 74.46 Buy 75.97 Buy 77.85 Buy 80.26 Buy 83.47 Buy 87.92 Buy 94.54 Buy
11.61 (%) 71.56 Buy 72.49 Buy 73.60 Buy 74.94 Buy 76.59 Buy 78.67 Buy 81.39 Buy 85.07 Buy 90.35 Buy
11.11 (%) 70.98 Buy 71.83 Buy 72.82 Buy 74.02 Buy 75.47 Buy 77.29 Buy 79.61 Buy 82.70 Buy 86.99 Buy
10.61 (%) 70.46 Buy 71.22 Buy 72.12 Buy 73.19 Buy 74.48 Buy 76.07 Buy 78.08 Buy 80.70 Buy 84.25 Buy
10.11 (%) 69.97 Buy 70.67 Buy 71.49 Buy 72.45 Buy 73.60 Buy 75.00 Buy 76.75 Buy 78.99 Buy 81.97 Buy
9.61 (%) 69.53 Buy 70.16 Buy 70.90 Buy 71.77 Buy 72.80 Buy 74.05 Buy 75.58 Buy 77.52 Buy 80.04 Buy
9.11 (%) 69.11 Buy 69.70 Buy 70.37 Buy 71.16 Buy 72.08 Buy 73.19 Buy 74.55 Buy 76.24 Buy 78.40 Buy
8.61 (%) 68.73 Buy 69.27 Buy 69.89 Buy 70.60 Buy 71.44 Buy 72.43 Buy 73.63 Buy 75.11 Buy 76.98 Buy
8.11 (%) 68.38 Buy 68.87 Buy 69.44 Buy 70.09 Buy 70.84 Buy 71.74 Buy 72.81 Buy 74.12 Buy 75.74 Buy