DCF VALUATION ON A BANK

ValuePro.net Assumptions

Your Assumptions

Explain the Reasoning for Your Assumptions

Excess Return Period (Years) (10 years is appropriate)

10

Revenues ($ mil) (From Income Statement)

524.4

Growth Rate (%) (Estimated Annual Growth Rate in Earnings in Future)

5

Net Operating Profit Margin (%) (EBIT from Income Statement)

31.923

Tax Rate (%) (From Income Statement: Taxes / Earnings Before Taxes)

23.50

Stock Price ($) (Current Price per Share)

34.55

Shares of Stock Outstanding (mil.) (Be careful with decimal)

67.2

10 Yr. Treasury Bond Yield (%)

5

Bond Spread to Treasury (%) (1.5 is appropriate)

1.5

Preferred Stock Yield (%)

7.5

Depreciation Rate (%) (Percentage of Revenue; Calculate)

0

Investment Rate (%) (Percentage of Revenue for Capital Expenditures - Calculate)

0

Working Capital (%) (Percentage of Revenue – WC is Current Assets; Calculate)

0

Short Term Assets ($ mil.) (Current Assets from Balance Sheet)

0

Short-Term Liabilities ($ mil.) (Current Liabilities from Balance Sheet)

7.9

Equity Risk Premium % (Should be between 5% and 6%)

3

Company Beta for Stock (Number) (Look up Beta)

1.1025

Value (Book) of Debt Outstanding ($ mil.) (L-T + S-T Debt from Balance Sheet)

1326.9

Value Preferred Stock Outstanding ($ mil)

0

Company WACC (%) (Look up or Calculate)

6.9