Discounted Cash Flow (DCF) Analysis Unlevered
BB&T Corporation (BBT)
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 | 9,060.00 | 8,979.37 | 9,183.20 | 10,220.90 | 10,769.76 | 10,991.62 | 11,433.48 | 11,893.11 | 12,371.21 | 12,868.53 | 13,385.85 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||||
| EBITDA | 3,653.90 | 3,475.91 | 3,339.01 | 4,039.30 | 3,854.50 | 4,594.50 | 4,430.47 | 4,608.58 | 4,793.84 | 4,986.56 | 5,187.02 |
| EBITDA (%) | |||||||||||
| EBIT | 3,232.61 | 3,052.09 | 2,878.01 | 3,484.30 | 3,304.16 | 4,039.42 | 3,858.80 | 4,013.92 | 4,175.28 | 4,343.13 | 4,517.72 |
| EBIT (%) | |||||||||||
| Depreciation | 421.29 | 423.83 | 461.00 | 554.99 | 550.33 | 555.08 | 571.67 | 594.66 | 618.56 | 643.43 | 669.29 |
| 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 | - | - | 4,013.98 | 4,423.61 | 3,083.38 | 3,986.66 | 4,341.29 | 4,515.81 | 4,697.35 | 4,886.18 | 5,082.61 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | |||||||||||
| Account Receivables | - | - | - | - | - | - | - | - | - | - | - |
| Account Receivables (%) | |||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | |||||||||||
| Accounts Payable | 7,094.89 | 6,387.92 | 6,120.60 | 5,745.17 | 5,990.14 | 5,433.16 | 7,190.52 | 7,479.58 | 7,780.25 | 8,093.02 | 8,418.36 |
| Accounts Payable (%) | |||||||||||
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 46.01 |
|---|---|
| Diluted Shares Outstanding | 783.48 |
| Cost of Debt | |
| Tax Rate | 19.88 |
| After-tax Cost of Debt | -0.94 |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 11.52 |
| Total Debt | 23,709.00 |
| Total Equity | 36,048.10 |
| Total Capital | 59,757.10 |
| Debt Weighting | 39.68 |
| Equity Weighting | 60.32 |
| 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 | 9,060.00 | 8,979.37 | 9,183.20 | 10,220.90 | 10,769.76 | 10,991.62 | 11,433.48 | 11,893.11 | 12,371.21 | 12,868.53 | 13,385.85 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 3,653.90 | 3,475.91 | 3,339.01 | 4,039.30 | 3,854.50 | 4,594.50 | 4,430.47 | 4,608.58 | 4,793.84 | 4,986.56 | 5,187.02 |
| EBIT | 3,232.61 | 3,052.09 | 2,878.01 | 3,484.30 | 3,304.16 | 4,039.42 | 3,858.80 | 4,013.92 | 4,175.28 | 4,343.13 | 4,517.72 |
| Tax Rate | 48.04% | 30.18% | 27.59% | 30.37% | 27.56% | 19.88% | 30.60% | 30.60% | 30.60% | 30.60% | 30.60% |
| EBIAT | 1,679.80 | 2,131.06 | 2,084.01 | 2,426.21 | 2,393.39 | 3,236.54 | 2,677.95 | 2,785.60 | 2,897.58 | 3,014.06 | 3,135.23 |
| Depreciation | 421.29 | 423.83 | 461.00 | 554.99 | 550.33 | 555.08 | 571.67 | 594.66 | 618.56 | 643.43 | 669.29 |
| Accounts Receivable | - | - | - | - | - | - | - | - | - | - | - |
| Inventories | - | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | -706.97 | -267.32 | -375.43 | 244.97 | -556.98 | 1,757.36 | 289.06 | 300.68 | 312.77 | 325.34 |
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - | - |
| UFCF | 2,101.09 | 1,847.92 | 2,277.69 | 2,605.77 | 3,188.70 | 3,234.63 | 5,006.98 | 3,669.31 | 3,816.82 | 3,970.26 | 4,129.86 |
| WACC | |||||||||||
| PV UFCF | 4,613.03 | 3,114.62 | 2,984.92 | 2,860.61 | 2,741.49 | ||||||
| SUM PV UFCF | 21,235.98 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.54 |
| Free cash flow (t + 1) | 4,295.06 |
| Terminal Value | 94,604.76 |
| Present Value of Terminal Value | 62,800.62 |
Intrinsic Value
| Enterprise Value | 84,036.60 |
|---|---|
| Net Debt | 19,722.34 |
| Equity Value | 64,314.26 |
| Shares Outstanding | 783.48 |
| Equity Value Per Share | 82.09 |
Results Unlevered DCF
| Wacc / Long-term Growth | -4 (%) | -3 (%) | -2 (%) | -1 (%) | 0 (%) | 1 (%) | 2 (%) | 3 (%) | 4 (%) |
|---|---|---|---|---|---|---|---|---|---|
| 10.54 (%) | 36.91 Sell | 40.98 Sell | 46.00 Sell | 52.35 Buy | 60.65 Buy | 71.94 Buy | 88.21 Buy | 113.66 Buy | 159.16 Buy |
| 10.04 (%) | 34.55 Sell | 38.17 Sell | 42.60 Sell | 48.12 Buy | 55.22 Buy | 64.66 Buy | 77.85 Buy | 97.57 Buy | 130.26 Buy |
| 9.54 (%) | 32.42 Sell | 35.66 Sell | 39.58 Sell | 44.42 Sell | 50.54 Buy | 58.53 Buy | 69.41 Buy | 85.08 Buy | 109.60 Buy |
| 9.04 (%) | 30.48 Sell | 33.39 Sell | 36.88 Sell | 41.15 Sell | 46.47 Buy | 53.30 Buy | 62.40 Buy | 75.11 Buy | 94.11 Buy |
| 8.54 (%) | 28.72 Sell | 31.34 Sell | 34.47 Sell | 38.24 Sell | 42.90 Sell | 48.80 Buy | 56.51 Buy | 66.99 Buy | 82.09 Buy |
| 8.04 (%) | 27.11 Sell | 29.48 Sell | 32.29 Sell | 35.65 Sell | 39.76 Sell | 44.89 Sell | 51.48 Buy | 60.25 Buy | 72.50 Buy |
| 7.54 (%) | 25.63 Sell | 27.79 Sell | 30.32 Sell | 33.33 Sell | 36.97 Sell | 41.46 Sell | 47.15 Buy | 54.57 Buy | 64.67 Buy |
| 7.04 (%) | 24.27 Sell | 26.23 Sell | 28.52 Sell | 31.23 Sell | 34.47 Sell | 38.43 Sell | 43.38 Sell | 49.73 Buy | 58.19 Buy |
| 6.54 (%) | 23.02 Sell | 24.81 Sell | 26.89 Sell | 29.33 Sell | 32.23 Sell | 35.74 Sell | 40.08 Sell | 45.56 Sell | 52.72 Buy |