DCF Tool

WAFD

Washington Federal Inc. – Savings Institutions
Washington Federal, Inc. is the parent company of Washington Federal Bank, dba WaFd Bank ("WaFd Bank"), a national bank with business consisting primarily of accepting deposits from the general public and investing these funds in loans of various types,including first lien mortgages on single-family dwellings, construction loans, land acquisition and development loans, loans on multi-family, commercial real estate and other income producing properties, home equity loans and business loans. WaFd Bank also invests in certain United States government and agency obligations and other investments permitted by applicable laws and regulations. As of December 31, 2020, WaFd Bank has 234 branches located in Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico and Texas. Through WaFd Bank's subsidiaries, Washington Federal is also engaged in insurance brokerage activities.
Analysis Results
Intrinsic Value $62.29
Latest Price $32.12
Relative Value 48% 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 7.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 1.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 7.5%, 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)
2023 254 233
2024 273 230
2025 293 226
2026 315 223
2027 339 220
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 4930 million. This corresponds to a present value of 2940 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1130 million. Adding in the terminal value gives a total present value of 4070 million.

There are presently 65.4 million outstanding shares, so the intrinsic value per share is 62.29.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 19,375,737,000
Current Cash 0
Current Liabilities 18,494,565,000
Current Debt 0
Non-Cash Working Capital (NCWC) 881,172,000
Change in NCWC -73,617,000
EBIT 299,386,000
Tax Provision 63,707,000
Depreciation and Amortization 64,050,000
Capital Expenditure -11,790,000
Unlevered Free Cash Flow 214,460,227
Current Assets 18,479,299,000
Current Cash 0
Current Liabilities 17,524,510,000
Current Debt 0
Non-Cash Working Capital (NCWC) 954,789,000
Change in NCWC 230,288,000
EBIT 218,601,000
Tax Provision 49,523,000
Depreciation and Amortization 33,914,000
Capital Expenditure -29,472,000
Unlevered Free Cash Flow 406,895,938
Current Assets 17,504,423,000
Current Cash 0
Current Liabilities 16,779,922,000
Current Debt 0
Non-Cash Working Capital (NCWC) 724,501,000
Change in NCWC -166,500,000
EBIT 219,160,000
Tax Provision 45,748,000
Depreciation and Amortization 39,912,000
Capital Expenditure -31,937,000
Unlevered Free Cash Flow 14,892,426
Current Assets 15,327,812,000
Current Cash 0
Current Liabilities 14,436,811,000
Current Debt 0
Non-Cash Working Capital (NCWC) 891,001,000
Change in NCWC 26,414,000
EBIT 261,965,000
Tax Provision 52,519,000
Depreciation and Amortization 31,058,000
Capital Expenditure -35,530,000
Unlevered Free Cash Flow 231,549,889
Current Assets 14,733,403,000
Current Cash 0
Current Liabilities 13,868,816,000
Current Debt 0
Non-Cash Working Capital (NCWC) 864,587,000
Change in NCWC -37,921,000
EBIT 257,345,000
Tax Provision 53,393,000
Depreciation and Amortization 46,735,000
Capital Expenditure -27,127,000
Unlevered Free Cash Flow 185,617,829
Current Assets 14,150,400,000
Current Cash 0
Current Liabilities 13,247,892,000
Current Debt 0
Non-Cash Working Capital (NCWC) 902,508,000
Change in NCWC 75,390,000
EBIT 254,722,000
Tax Provision 82,684,000
Depreciation and Amortization 41,680,000
Capital Expenditure -15,461,000
Unlevered Free Cash Flow 274,129,131
Current Assets 13,739,450,000
Current Cash 0
Current Liabilities 12,912,332,000
Current Debt 0
Non-Cash Working Capital (NCWC) 827,118,000
Change in NCWC -93,641,000
EBIT 238,088,000
Tax Provision 84,085,000
Depreciation and Amortization 22,988,000
Capital Expenditure -37,933,000
Unlevered Free Cash Flow 48,821,281
Current Assets 13,533,404,000
Current Cash 0
Current Liabilities 12,612,645,000
Current Debt 0
Non-Cash Working Capital (NCWC) 920,759,000
Change in NCWC -74,191,000
EBIT 250,769,000
Tax Provision 89,203,000
Depreciation and Amortization 21,217,000
Capital Expenditure -36,860,000
Unlevered Free Cash Flow 71,285,125
Current Assets 13,777,708,000
Current Cash 0
Current Liabilities 12,782,758,000
Current Debt 0
Non-Cash Working Capital (NCWC) 994,950,000
Change in NCWC -5,590,000
EBIT 244,928,000
Tax Provision 87,564,000
Depreciation and Amortization 17,347,000
Capital Expenditure -51,794,000
Unlevered Free Cash Flow 117,327,000
Current Assets 12,145,764,000
Current Cash 0
Current Liabilities 11,145,224,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,000,540,000
Change in NCWC 39,366,000
EBIT 234,616,000
Tax Provision 83,111,000
Depreciation and Amortization 8,707,000
Capital Expenditure -29,246,000
Unlevered Free Cash Flow 170,332,000
Current Assets 11,534,366,000
Current Cash 0
Current Liabilities 10,573,192,000
Current Debt 0
Non-Cash Working Capital (NCWC) 961,174,000
Change in NCWC 6,816,000
EBIT 215,911,000
Tax Provision 77,728,000
Depreciation and Amortization 7,587,000
Capital Expenditure -32,010,000
Unlevered Free Cash Flow 120,576,000

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