DCF Tool

PFS

Provident Financial Services Inc – Savings Institutions
Provident Bank, a community-oriented financial institution offering 'Commitment you can count on' since 1839, is the wholly owned subsidiary of Provident Financial Services, Inc., which reported assets of $12.92 billion as of December 31, 2020. With $9.84 billion in deposits, Provident Bank provides a comprehensive suite of financial products and services through its network of branches throughout northern and central New Jersey, as well as Bucks, Lehigh and Northampton counties in Pennsylvania and Queens County in New York. The Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company, and full service insurance agency and brokerage services through its wholly owned subsidiary, SB One Insurance Agency, Inc.
Analysis Results
Intrinsic Value $284.77
Latest Price $19.50
Relative Value 93% 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 19.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.7%, 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 399 382
2023 478 438
2024 572 502
2025 685 575
2026 819 659
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 24600 million. This corresponds to a present value of 18900 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2560 million. Adding in the terminal value gives a total present value of 21500 million.

There are presently 75.4 million outstanding shares, so the intrinsic value per share is 284.77.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 13,214,846,000
Current Cash 0
Current Liabilities 11,905,509,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,309,337,000
Change in NCWC 524,919,000
EBIT 227,118,000
Tax Provision 59,197,000
Depreciation and Amortization 22,730,000
Capital Expenditure -13,805,000
Unlevered Free Cash Flow 701,765,000
Current Assets 11,857,652,000
Current Cash 0
Current Liabilities 11,073,234,000
Current Debt 0
Non-Cash Working Capital (NCWC) 784,418,000
Change in NCWC 114,465,000
EBIT 127,554,000
Tax Provision 30,603,000
Depreciation and Amortization 20,024,000
Capital Expenditure -12,825,000
Unlevered Free Cash Flow 218,615,000
Current Assets 8,924,512,000
Current Cash 0
Current Liabilities 8,254,559,000
Current Debt 0
Non-Cash Working Capital (NCWC) 669,953,000
Change in NCWC 55,624,000
EBIT 147,088,000
Tax Provision 34,455,000
Depreciation and Amortization 10,395,000
Capital Expenditure -4,882,000
Unlevered Free Cash Flow 173,770,000
Current Assets 8,912,301,000
Current Cash 0
Current Liabilities 8,297,972,000
Current Debt 0
Non-Cash Working Capital (NCWC) 614,329,000
Change in NCWC 95,475,000
EBIT 143,917,000
Tax Provision 25,530,000
Depreciation and Amortization 10,101,000
Capital Expenditure -3,162,000
Unlevered Free Cash Flow 220,801,000
Current Assets 9,001,467,000
Current Cash 0
Current Liabilities 8,482,613,000
Current Debt 0
Non-Cash Working Capital (NCWC) 518,854,000
Change in NCWC 68,129,000
EBIT 140,477,000
Tax Provision 46,528,000
Depreciation and Amortization 11,623,000
Capital Expenditure -3,231,000
Unlevered Free Cash Flow 170,470,000
Current Assets 8,641,551,000
Current Cash 0
Current Liabilities 8,190,826,000
Current Debt 0
Non-Cash Working Capital (NCWC) 450,725,000
Change in NCWC 63,229,000
EBIT 124,782,000
Tax Provision 36,980,000
Depreciation and Amortization 12,760,000
Capital Expenditure -4,995,000
Unlevered Free Cash Flow 158,796,000
Current Assets 8,042,460,000
Current Cash 0
Current Liabilities 7,654,964,000
Current Debt 0
Non-Cash Working Capital (NCWC) 387,496,000
Change in NCWC 14,835,000
EBIT 120,163,000
Tax Provision 36,441,000
Depreciation and Amortization 13,714,000
Capital Expenditure -5,909,000
Unlevered Free Cash Flow 106,362,000
Current Assets 7,696,684,000
Current Cash 0
Current Liabilities 7,324,023,000
Current Debt 0
Non-Cash Working Capital (NCWC) 372,661,000
Change in NCWC 29,964,000
EBIT 105,416,000
Tax Provision 31,785,000
Depreciation and Amortization 11,133,000
Capital Expenditure -16,441,000
Unlevered Free Cash Flow 98,287,000
Current Assets 6,769,423,000
Current Cash 0
Current Liabilities 6,426,726,000
Current Debt 0
Non-Cash Working Capital (NCWC) 342,697,000
Change in NCWC 9,828,000
EBIT 105,900,000
Tax Provision 35,366,000
Depreciation and Amortization 8,776,000
Capital Expenditure -7,709,000
Unlevered Free Cash Flow 81,429,000
Current Assets 6,585,642,000
Current Cash 0
Current Liabilities 6,252,773,000
Current Debt 0
Non-Cash Working Capital (NCWC) 332,869,000
Change in NCWC 31,308,000
EBIT 96,122,000
Tax Provision 28,855,000
Depreciation and Amortization 9,327,000
Capital Expenditure -7,658,000
Unlevered Free Cash Flow 100,244,000

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