DCF Tool

FBC

Flagstar Bancorp, Inc. – Savings Institutions
Flagstar Bancorp, Inc. is a $31.0 billion savings and loan holding company headquartered in Troy, Mich.Flagstar Bank, FSB, provides commercial, small business, and consumer banking services through 158 branches in Michigan, Indiana, California, Wisconsin and Ohio. It also provides home loans through a wholesale network of brokers and correspondents in all 50 states, as well as 103 retail locations in 28 states, representing the combined retail branches of Flagstar and its Opes Advisors mortgage division. Flagstar is a leading national originator and servicer of mortgage and other consumer loans, handling payments and record keeping for $227 billion of loans representing almost 1.1 million borrowers.
Analysis Results
Intrinsic Value $4,361.59
Latest Price $41.34
Relative Value 99% undervalued
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Cash Flow (Billions)
Analysis Parameters
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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 47.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 47.0%, 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 1.78 1.74
2023 2.62 2.48
2024 3.86 3.55
2025 5.67 5.08
2026 8.33 7.26
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 250 billion. This corresponds to a present value of 212 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 20.1 billion. Adding in the terminal value gives a total present value of 232 billion.

There are presently 53.2 million outstanding shares, so the intrinsic value per share is 4361.59.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 23,775,000,000
Current Cash 0
Current Liabilities 21,885,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,890,000,000
Change in NCWC 593,000,000
EBIT 690,000,000
Tax Provision 157,000,000
Depreciation and Amortization 84,000,000
Capital Expenditure -33,000,000
Unlevered Free Cash Flow 1,177,000,000
Current Assets 28,862,000,000
Current Cash 0
Current Liabilities 27,565,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,297,000,000
Change in NCWC 307,000,000
EBIT 704,000,000
Tax Provision 166,000,000
Depreciation and Amortization 76,000,000
Capital Expenditure -54,000,000
Unlevered Free Cash Flow 867,000,000
Current Assets 21,447,000,000
Current Cash 0
Current Liabilities 20,457,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 990,000,000
Change in NCWC 495,000,000
EBIT 266,000,000
Tax Provision 48,000,000
Depreciation and Amortization 70,000,000
Capital Expenditure -61,000,000
Unlevered Free Cash Flow 722,000,000
Current Assets 16,764,000,000
Current Cash 0
Current Liabilities 16,269,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 495,000,000
Change in NCWC 151,000,000
EBIT 232,000,000
Tax Provision 45,000,000
Depreciation and Amortization 56,000,000
Capital Expenditure -71,000,000
Unlevered Free Cash Flow 323,000,000
Current Assets 15,452,000,000
Current Cash 0
Current Liabilities 15,108,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 344,000,000
Change in NCWC 113,000,000
EBIT 211,000,000
Tax Provision 148,000,000
Depreciation and Amortization 40,000,000
Capital Expenditure -97,000,000
Unlevered Free Cash Flow 119,000,000
Current Assets 12,531,000,000
Current Cash 0
Current Liabilities 12,300,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 231,000,000
Change in NCWC -298,000,000
EBIT 260,000,000
Tax Provision 87,000,000
Depreciation and Amortization 32,000,000
Capital Expenditure -52,000,000
Unlevered Free Cash Flow -145,674,418
Current Assets 12,292,000,000
Current Cash 0
Current Liabilities 11,763,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 529,000,000
Change in NCWC -92,925,000
EBIT 240,000,000
Tax Provision 82,000,000
Depreciation and Amortization 24,000,000
Capital Expenditure -46,000,000
Unlevered Free Cash Flow 43,075,000
Current Assets 8,588,725,000
Current Cash 0
Current Liabilities 7,966,800,000
Current Debt 0
Non-Cash Working Capital (NCWC) 621,925,000
Change in NCWC -56,096,000
EBIT -103,444,000
Tax Provision -33,979,000
Depreciation and Amortization 23,983,000
Capital Expenditure -33,027,000
Unlevered Free Cash Flow -168,584,000
Current Assets 8,213,595,000
Current Cash 0
Current Liabilities 7,535,574,000
Current Debt 0
Non-Cash Working Capital (NCWC) 678,021,000
Change in NCWC -418,099,000
EBIT -149,263,000
Tax Provision -416,250,000
Depreciation and Amortization 23,229,000
Capital Expenditure -35,979,000
Unlevered Free Cash Flow -580,112,000
Current Assets 13,024,270,000
Current Cash 0
Current Liabilities 11,928,150,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,096,120,000
Change in NCWC 554,209,000
EBIT 52,731,000
Tax Provision -15,645,000
Depreciation and Amortization 20,206,000
Capital Expenditure -34,673,000
Unlevered Free Cash Flow 592,473,000

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