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Discounted Cash Flow (DCF) Analysis Unlevered


BB&T Corporation

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 9,060.008,979.379,183.2010,220.9010,769.7610,991.6211,433.4811,893.1112,371.2112,868.5313,385.85
Revenue (%)
EBITDA 3,653.903,475.913,339.014,039.303,854.504,594.504,430.474,608.584,793.844,986.565,187.02
EBITDA (%)
EBIT 3,232.613,052.092,878.013,484.303,304.164,039.423,858.804,013.924,175.284,343.134,517.72
EBIT (%)
Depreciation 421.29423.83461.00554.99550.33555.08571.67594.66618.56643.43669.29
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 --4,013.984,423.613,083.383,986.664,341.294,515.814,697.354,886.185,082.61
Total Cash (%)
Account Receivables -----------
Account Receivables (%)
Inventories -----------
Inventories (%)
Accounts Payable 7,094.896,387.926,120.605,745.175,990.145,433.167,190.527,479.587,780.258,093.028,418.36
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 9,060.008,979.379,183.2010,220.9010,769.7610,991.6211,433.4811,893.1112,371.2112,868.5313,385.85
EBITDA 3,653.903,475.913,339.014,039.303,854.504,594.504,430.474,608.584,793.844,986.565,187.02
EBIT 3,232.613,052.092,878.013,484.303,304.164,039.423,858.804,013.924,175.284,343.134,517.72
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 1,679.802,131.062,084.012,426.212,393.393,236.542,677.952,785.602,897.583,014.063,135.23
Depreciation 421.29423.83461.00554.99550.33555.08571.67594.66618.56643.43669.29
Accounts Receivable -----------
Inventories -----------
Accounts Payable --706.97-267.32-375.43244.97-556.981,757.36289.06300.68312.77325.34
Capital Expenditure -----------
UFCF 2,101.091,847.922,277.692,605.773,188.703,234.635,006.983,669.313,816.823,970.264,129.86
WACC
PV UFCF 4,613.033,114.622,984.922,860.612,741.49
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