Discounted Cash Flow

Mercantile Bank Corp.

MBWM · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $31.9m $34.6m $1.96
2017 $31.3m (-2.0%) $38.7m (11.7%) $1.90 (-3.1%)
2018 $42.0m (34.4%) $61.7m (59.7%) $2.53 (33.2%)
2019 $49.5m (17.7%) $44.8m (-27.5%) $3.01 (19.0%)
2020 $44.1m (-10.8%) $37.9m (-15.4%) $2.71 (-10.0%)
2021 $59.0m (33.7%) $64.6m (70.5%) $3.69 (36.2%)
2022 $61.1m (3.5%) $116.8m (81.0%) $3.85 (4.3%)
2023 $82.2m (34.6%) $59.9m (-48.7%) $5.13 (33.2%)
2024 $79.6m (-3.2%) $92.6m (54.5%) $4.93 (-3.9%)
2025 $88.8m (11.5%) $11.2m (-87.9%) $5.47 (11.0%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model