DCF Tool

NWBI

Northwest Bancshares Inc – Savings Institutions
Headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc. is the holding company of Northwest Bank. Founded in 1896, Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, employee benefits and wealth management services, as well as the fulfillment of business and personal insurance needs. As of September 30, 2020, Northwest operated 205 full-service community banking offices and eight free standing drive-through facilities in Pennsylvania, New York, Ohio and Indiana.
Analysis Results
Intrinsic Value $84.71
Latest Price $15.13
Relative Value 82% undervalued
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Cash Flow (Millions)
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 15.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 15.7%, 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 (million) Present value (million)
2022 234 223
2023 271 246
2024 314 271
2025 363 298
2026 421 329
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 12600 million. This corresponds to a present value of 9390 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1370 million. Adding in the terminal value gives a total present value of 10800 million.

There are presently 127.0 million outstanding shares, so the intrinsic value per share is 84.71.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 13,535,755,000
Current Cash 0
Current Liabilities 12,739,273,000
Current Debt 0
Non-Cash Working Capital (NCWC) 796,482,000
Change in NCWC 58,756,000
EBIT 206,509,000
Tax Provision 46,801,000
Depreciation and Amortization 6,633,000
Capital Expenditure -17,517,000
Unlevered Free Cash Flow 206,326,925
Current Assets 12,796,081,000
Current Cash 0
Current Liabilities 12,058,355,000
Current Debt 0
Non-Cash Working Capital (NCWC) 737,726,000
Change in NCWC 68,296,000
EBIT 116,590,000
Tax Provision 17,672,000
Depreciation and Amortization 4,738,000
Capital Expenditure -12,254,000
Unlevered Free Cash Flow 155,101,897
Current Assets 9,675,271,000
Current Cash 0
Current Liabilities 9,005,841,000
Current Debt 0
Non-Cash Working Capital (NCWC) 669,430,000
Change in NCWC 39,534,000
EBIT 147,839,000
Tax Provision 30,679,000
Depreciation and Amortization 3,824,000
Capital Expenditure -10,899,000
Unlevered Free Cash Flow 148,156,262
Current Assets 8,913,719,000
Current Cash 0
Current Liabilities 8,283,823,000
Current Debt 0
Non-Cash Working Capital (NCWC) 629,896,000
Change in NCWC 57,732,000
EBIT 137,136,000
Tax Provision 28,422,000
Depreciation and Amortization 8,120,000
Capital Expenditure -5,233,000
Unlevered Free Cash Flow 168,648,943
Current Assets 8,659,889,000
Current Cash 0
Current Liabilities 8,087,725,000
Current Debt 0
Non-Cash Working Capital (NCWC) 572,164,000
Change in NCWC 55,088,000
EBIT 125,993,000
Tax Provision 41,444,000
Depreciation and Amortization 14,293,000
Capital Expenditure -3,719,000
Unlevered Free Cash Flow 153,235,343
Current Assets 8,906,680,000
Current Cash 0
Current Liabilities 8,389,604,000
Current Debt 0
Non-Cash Working Capital (NCWC) 517,076,000
Change in NCWC -2,418,000
EBIT 122,937,000
Tax Provision 21,648,000
Depreciation and Amortization 15,424,000
Capital Expenditure -15,227,000
Unlevered Free Cash Flow 83,397,901
Current Assets 8,254,023,000
Current Cash 0
Current Liabilities 7,734,529,000
Current Debt 0
Non-Cash Working Capital (NCWC) 519,494,000
Change in NCWC -23,086,000
EBIT 98,251,000
Tax Provision 27,960,000
Depreciation and Amortization 8,958,000
Capital Expenditure -13,223,000
Unlevered Free Cash Flow 39,859,345
Current Assets 7,197,768,000
Current Cash 0
Current Liabilities 6,655,188,000
Current Debt 0
Non-Cash Working Capital (NCWC) 542,580,000
Change in NCWC -63,047,000
EBIT 83,757,000
Tax Provision 21,795,000
Depreciation and Amortization 9,868,000
Capital Expenditure -9,968,000
Unlevered Free Cash Flow -1,185,000
Current Assets 7,286,802,000
Current Cash 0
Current Liabilities 6,681,175,000
Current Debt 0
Non-Cash Working Capital (NCWC) 605,627,000
Change in NCWC 19,148,000
EBIT 93,070,000
Tax Provision 26,331,000
Depreciation and Amortization 8,952,000
Capital Expenditure -19,367,000
Unlevered Free Cash Flow 75,472,000
Current Assets 7,338,433,000
Current Cash 0
Current Liabilities 6,751,954,000
Current Debt 0
Non-Cash Working Capital (NCWC) 586,479,000
Change in NCWC -10,517,000
EBIT 89,951,000
Tax Provision 26,368,000
Depreciation and Amortization 9,466,000
Capital Expenditure -18,255,000
Unlevered Free Cash Flow 44,270,256

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