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Discounted Cash Flow (DCF) Analysis Unlevered


Fifth Third Bancorp

Fifth Third Bancorp (FITB)

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 6,559.005,737.166,139.915,967.996,761.136,692.856,745.726,799.016,852.726,906.866,961.42
Revenue (%)
EBITDA 3,114.872,440.012,812.082,664.713,319.723,124.893,106.403,130.943,155.683,180.613,205.74
EBITDA (%)
EBIT 2,607.862,025.792,371.232,211.742,978.962,764.812,655.122,676.092,697.232,718.542,740.02
EBIT (%)
Depreciation 507.01414.22440.85452.97340.76360.08451.29454.85458.45462.07465.72
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 --2,540.082,391.972,513.792,681.152,676.032,697.172,718.482,739.952,761.60
Total Cash (%)
Account Receivables -----------
Account Receivables (%)
Inventories -----------
Inventories (%)
Accounts Payable -----------
Accounts Payable (%)
Capital Expenditure -447.32-258.17-211.83-229.77-190.66-76.97-254.31-256.32-258.35-260.39-262.45
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 30.12
Diluted Shares Outstanding 673.35
Cost of Debt
Tax Rate 20.69
After-tax Cost of Debt -0.98
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.05
Total Debt 11,323.00
Total Equity 20,281.19
Total Capital 31,604.19
Debt Weighting 35.83
Equity Weighting 64.17
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 6,559.005,737.166,139.915,967.996,761.136,692.856,745.726,799.016,852.726,906.866,961.42
EBITDA 3,114.872,440.012,812.082,664.713,319.723,124.893,106.403,130.943,155.683,180.613,205.74
EBIT 2,607.862,025.792,371.232,211.742,978.962,764.812,655.122,676.092,697.232,718.542,740.02
Tax Rate 29.60%26.90%27.79%30.06%26.82%20.69%26.98%26.98%26.98%26.98%26.98%
EBIAT 1,835.901,480.851,712.171,546.822,179.972,192.851,938.821,954.141,969.581,985.142,000.82
Depreciation 507.01414.22440.85452.97340.76360.08451.29454.85458.45462.07465.72
Accounts Receivable -----------
Inventories -----------
Accounts Payable -----------
Capital Expenditure --189.15-46.3517.94-39.10-113.70177.352.012.022.042.06
UFCF 2,342.911,705.922,106.672,017.732,481.632,439.232,567.462,411.002,430.052,449.252,468.59
WACC
PV UFCF 2,338.301,999.831,835.731,685.091,546.81
SUM PV UFCF 14,843.00

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.80
Free cash flow (t + 1) 2,567.34
Terminal Value 44,264.46
Present Value of Terminal Value 27,735.98

Intrinsic Value

Enterprise Value 42,578.98
Net Debt 8,641.85
Equity Value 33,937.13
Shares Outstanding 673.35
Equity Value Per Share 50.40