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Discounted Cash Flow (DCF) Analysis Unlevered


SunTrust Banks Inc.

SunTrust Banks Inc. (STI)

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 7,514.007,821.327,867.478,160.148,577.949,005.129,338.319,683.8310,042.1310,413.6910,798.99
Revenue (%)
EBITDA 2,373.672,960.373,482.933,407.673,532.394,038.803,758.673,897.744,041.964,191.514,346.59
EBITDA (%)
EBIT 1,665.852,267.402,696.972,683.052,804.993,322.892,924.763,032.973,145.193,261.573,382.24
EBIT (%)
Depreciation 707.82692.97785.96724.62727.41715.91833.91864.77896.76929.94964.35
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 --6,560.687,402.068,087.288,737.678,530.548,846.179,173.489,512.909,864.88
Total Cash (%)
Account Receivables -----------
Account Receivables (%)
Inventories -----------
Inventories (%)
Accounts Payable -----------
Accounts Payable (%)
Capital Expenditure -199.87-147.04-185.67-283.16-410.03-344.90-295.09-306.01-317.33-329.07-341.25
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 58.77
Diluted Shares Outstanding 464.96
Cost of Debt
Tax Rate 16.49
After-tax Cost of Debt -0.77
Risk-Free Rate
Market Risk Premium
Cost of Equity 14.75
Total Debt 15,072.00
Total Equity 27,325.76
Total Capital 42,397.76
Debt Weighting 35.55
Equity Weighting 64.45
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 7,514.007,821.327,867.478,160.148,577.949,005.129,338.319,683.8310,042.1310,413.6910,798.99
EBITDA 2,373.672,960.373,482.933,407.673,532.394,038.803,758.673,897.744,041.964,191.514,346.59
EBIT 1,665.852,267.402,696.972,683.052,804.993,322.892,924.763,032.973,145.193,261.573,382.24
Tax Rate 19.33%21.75%28.33%30.00%18.97%16.49%22.48%22.48%22.48%22.48%22.48%
EBIAT 1,343.881,774.311,932.981,878.042,272.992,774.912,267.352,351.252,438.242,528.462,622.01
Depreciation 707.82692.97785.96724.62727.41715.91833.91864.77896.76929.94964.35
Accounts Receivable -----------
Inventories -----------
Accounts Payable -----------
Capital Expenditure --52.8338.6397.48126.87-65.13-49.8110.9211.3211.7412.18
UFCF 2,051.702,414.452,757.572,700.143,127.273,425.683,051.463,226.933,346.333,470.143,598.54
WACC
PV UFCF 2,749.312,619.522,447.472,286.712,136.52
SUM PV UFCF 17,841.19

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.99
Free cash flow (t + 1) 3,742.48
Terminal Value 53,540.44
Present Value of Terminal Value 31,787.96

Intrinsic Value

Enterprise Value 49,629.16
Net Debt 6,334.33
Equity Value 43,294.82
Shares Outstanding 464.96
Equity Value Per Share 93.11