DCF Tool

COF

Capital One Financial Corp. – Credit Card Issuing
Capital One Financial Corporation is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $305.4 billion in deposits and $421.6 billion in total assets as of December 31, 2020. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia.
Analysis Results
Intrinsic Value $1,711.91
Latest Price $92.17
Relative Value 95% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 10.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.8%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 16.5 15.8
2023 18.3 16.7
2024 20.3 17.7
2025 22.5 18.7
2026 24.9 19.8
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 747 billion. This corresponds to a present value of 568 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 88.7 billion. Adding in the terminal value gives a total present value of 657 billion.

There are presently 384.0 million outstanding shares, so the intrinsic value per share is 1711.91.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 390,573,000,000
Current Cash 0
Current Liabilities 354,294,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 36,279,000,000
Change in NCWC 1,080,000,000
EBIT 15,809,000,000
Tax Provision 3,415,000,000
Depreciation and Amortization 3,481,000,000
Capital Expenditure -698,000,000
Unlevered Free Cash Flow 16,257,000,000
Current Assets 381,457,000,000
Current Cash 0
Current Liabilities 346,258,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 35,199,000,000
Change in NCWC 208,000,000
EBIT 3,203,000,000
Tax Provision 486,000,000
Depreciation and Amortization 3,501,000,000
Capital Expenditure -710,000,000
Unlevered Free Cash Flow 5,716,000,000
Current Assets 353,721,000,000
Current Cash 0
Current Liabilities 318,730,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 34,991,000,000
Change in NCWC 6,223,000,000
EBIT 6,874,000,000
Tax Provision 1,341,000,000
Depreciation and Amortization 3,339,000,000
Capital Expenditure -887,000,000
Unlevered Free Cash Flow 14,208,000,000
Current Assets 337,895,000,000
Current Cash 0
Current Liabilities 309,127,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 28,768,000,000
Change in NCWC 2,695,000,000
EBIT 7,318,000,000
Tax Provision 1,293,000,000
Depreciation and Amortization 2,396,000,000
Capital Expenditure -874,000,000
Unlevered Free Cash Flow 10,242,000,000
Current Assets 330,469,000,000
Current Cash 0
Current Liabilities 304,396,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 26,073,000,000
Change in NCWC 3,209,000,000
EBIT 5,492,000,000
Tax Provision 3,375,000,000
Depreciation and Amortization 2,440,000,000
Capital Expenditure -1,018,000,000
Unlevered Free Cash Flow 6,748,000,000
Current Assets 320,419,000,000
Current Cash 0
Current Liabilities 297,555,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 22,864,000,000
Change in NCWC 465,000,000
EBIT 5,484,000,000
Tax Provision 1,714,000,000
Depreciation and Amortization 2,428,000,000
Capital Expenditure -779,000,000
Unlevered Free Cash Flow 5,884,000,000
Current Assets 299,534,000,000
Current Cash 0
Current Liabilities 277,135,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 22,399,000,000
Change in NCWC 1,243,000,000
EBIT 5,881,000,000
Tax Provision 1,869,000,000
Depreciation and Amortization 2,100,000,000
Capital Expenditure -532,000,000
Unlevered Free Cash Flow 6,823,000,000
Current Assets 275,478,000,000
Current Cash 0
Current Liabilities 254,322,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 21,156,000,000
Change in NCWC 4,023,000,000
EBIT 6,569,000,000
Tax Provision 2,146,000,000
Depreciation and Amortization 2,002,000,000
Capital Expenditure -502,000,000
Unlevered Free Cash Flow 9,946,000,000
Current Assets 262,617,000,000
Current Cash 0
Current Liabilities 245,484,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 17,133,000,000
Change in NCWC 1,885,000,000
EBIT 6,610,000,000
Tax Provision 2,025,000,000
Depreciation and Amortization 2,065,000,000
Capital Expenditure -818,000,000
Unlevered Free Cash Flow 7,656,095,371
Current Assets 278,093,000,000
Current Cash 0
Current Liabilities 262,845,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 15,248,000,000
Change in NCWC 5,147,000,000
EBIT 4,777,000,000
Tax Provision 1,301,000,000
Depreciation and Amortization 1,862,000,000
Capital Expenditure -560,000,000
Unlevered Free Cash Flow 9,991,664,945

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.