Great Western Bancorp (Great Western Bancorp) Intrinsic Value: DCF (FCF Based) : $0.00 (As of May. 05, 2024)

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What is Great Western Bancorp Intrinsic Value: DCF (FCF Based)?

As of today (2024-05-05), Great Western Bancorp's intrinsic value calculated from the Discounted Cash Flow model is $0.00.

Note: Discounted Cash Flow model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

Great Western Bancorp's Predictability Rank is Not Rated. Thus, this page is only used for demonstration purposes and the DCF related results in the screener and portfolio will appear as zero.

Margin of Safety (FCF Based) using Discounted Cash Flow model for Great Western Bancorp is N/A%.

The industry rank for Great Western Bancorp's Intrinsic Value: DCF (FCF Based) or its related term are showing as below:

GWB's Price-to-DCF (FCF Based) is not ranked ^*
in the Banks industry.
Industry Median: 0.45
* Ranked among companies with meaningful Price-to-DCF (FCF Based) only.

Great Western Bancorp Intrinsic Value: DCF (FCF Based) Historical Data

The historical data trend for Great Western Bancorp's Intrinsic Value: DCF (FCF Based) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Great Western Bancorp Intrinsic Value: DCF (FCF Based) Chart

Great Western Bancorp Annual Data

Trend

Sep12

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Intrinsic Value: DCF (FCF Based)

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Great Western Bancorp Quarterly Data
	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21
Intrinsic Value: DCF (FCF Based)	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of Great Western Bancorp's Intrinsic Value: DCF (FCF Based)

For the Banks - Regional subindustry, Great Western Bancorp's Price-to-DCF (FCF Based), along with its competitors' market caps and Price-to-DCF (FCF Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Great Western Bancorp's Price-to-DCF (FCF Based) Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Great Western Bancorp's Price-to-DCF (FCF Based) distribution charts can be found below:

* The bar in red indicates where Great Western Bancorp's Price-to-DCF (FCF Based) falls into.

Great Western Bancorp Intrinsic Value: DCF (FCF Based) Calculation

This is the intrinsic value calculated from the Discounted Cash Flow model with default parameters. In a discounted cash flow model, the future cash flow is estimated based on a cash flow growth rate and a discount rate. The cash flow of the future is discounted to its current value at the discount rate. All of the discounted future cash flow is added together to get the current intrinsic value of the company.

Usually a two-stage model is used when calculating a stock's intrinsic value using a discounted cash flow model. The first stage is called the growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.

GuruFocus DCF calculator is a two-stage model. The default values are defined as:

1. Discount Rate: d = 11%
A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.50%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.

2. Growth Rate in the growth stage: g1 = 5%
The Growth Rate in the growth stage is initially set as the default 10-Year FCF Growth Rate (Per Share). In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year FCF Growth Rate (Per Share). If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year FCF Growth Rate (Per Share).
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=> Great Western Bancorp's average Free Cash Flow Growth Rate in the past 5 years was 0.90%, which is less than 5%. GuruFocus defaults => Growth Rate: 5%

3. Years of Growth Stage: y1 = 10

4. Terminal Growth Rate: g2 = 4%

5. Years of Terminal Growth: y2 = 10

6. Free Cash Flow per Share: fcf = $0.000.
However, GuruFocus DCF calculator is actually a Discounted Earnings calculator, the EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.

All of the default settings can be changed and the results are calculated automatically.

Great Western Bancorp's Intrinsic Value: DCF (FCF Based) for today is calculated as

Intrinsic Value: DCF (FCF Based)	=	Free Cash Flow per Share	*	{[(1+g1)/(1+d)	+	(1+g1)^2/(1+d)^2	+	...	+	(1+g1)^10/(1+d)^10]
	+	(1+g1)^10/(1+d)^10	*	[(1+g2)/(1+d)	+	(1+g2)^2/(1+d)^2	+	...	+	(1+g2)^10/(1+d)^10]}

set x = (1+g1)/(1+d) = (1+0.05)/(1+0.11) = 0.94594594594595
and y = (1+g2)/(1+d) = (1+0.04)/(1+0.11) = 0.93693693693694

Intrinsic Value: DCF (FCF Based)

Free Cash Flow per Share

{[x

x^2

...

x^10]

x^10

y^2

...

y^10]}

Free Cash Flow per Share

(1-x^10)

(1-x)

x^10

(1-y^10)

(1-y)]

0.000

11.5406

0.00

Margin of Safety (FCF Based)	=	(Intrinsic Value: DCF (FCF Based)	-	Current Price)	/	Intrinsic Value: DCF (FCF Based)
	=	(0	-	30.88)	/	0
	=	N/A %

Great Western Bancorp (NYSE:GWB) Intrinsic Value: DCF (FCF Based) Explanation

Unlike valuation methods such as Net Current Asset Value, Tangible Book per Share, Graham Number, Median PS Value etc, discounted Cash Flow model evaluates the companies based on their future earnings power instead of their assets.

Be Aware

What you need to know about the DCF model:

1. The DCF model evaluates a company based on its future earnings power
2. Growth is taken into account; therefore a faster growth company is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies that have relatively consistent performance.
4. The DCF model works poorly for inconsistent performers such as cyclicals.
5. What discount rate should you use? Your expected return from the investment is a good discount rate assumption.
6. A larger margin of safety should be required for companies with less predictable businesses.

You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.

Great Western Bancorp Intrinsic Value: DCF (FCF Based) Related Terms

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Great Western Bancorp (Great Western Bancorp) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Great Western Bancorp Inc (NYSE:GWB) » Definitions » Intrinsic Value: DCF (FCF Based)

Comparable Companies

Traded in Other Exchanges

N/A

Address

225 South Main Avenue, Sioux Falls, SD, USA, 57104

Website

https://www.greatwesternbank.com

Great Western Bancorp Inc is a bank holding company. The company principally operates through its wholly owned subsidiary, Great Western Bank. The bank is a full-service regional bank focused on relationship-based banking and agri-business banking primarily in the Midwest, as well as the Southwest region of the United States. The bank's strategy does not emphasize building-specific lines of business or geographic segments but instead prefers to work as an integrated unit providing customized solutions for its customers. The company, therefore, reports only through one segment. A plurality of its loan portfolio is in commercial real estate, followed by agricultural loans. The vast majority of the company's net revenue comes from net interest income.

Executives

Andrew James Pederson	officer: Head of P&C and L&D	C/O GREAT WESTERN BANCORP, INC. 225 S MAIN AVENUE SIOUX FALLS SD 57104
Karlyn M Knieriem	officer: EVP and Chief Risk Officer	C/O GREAT WESTERN BANCORP, INC., 225 S MAIN AVENUE, SIOUX FALLS SD 57104
Donald J Straka	officer: General Counsel and Secretary	C/O GREAT WESTERN BANCORP, INC., 225 S MAIN AVENUE, SIOUX FALLS SD 57104
Mark Charles Borrecco	director, officer: President and CEO	C/O GREAT WESTERN BANCORP, INC. 225 S MAIN AVENUE SIOUX FALLS SD 57104
Frances Pallas Grieb	director	C/O GREAT WESTERN BANCORP, INC., 100 NORTH PHILLIPS AVE., SIOUX FALLS SD 57104
James Brannen	director	5400 UNIVERSITY AVENUE, WEST DES MOINES IA 50266
Douglas Richard Bass	officer: Regional President and EVP	C/O GREAT WESTERN BANCORP, INC. 100 NORTH PHILLIPS AVE. SIOUX FALLS SD 57104
Peter Robert Chapman	officer: EVP and CFO	C/O GREAT WESTERN BANCORP, INC., 100 NORTH PHILLIPS AVE., SIOUX FALLS SD 57104
Stephen W. Yose	officer: EVP & Chief Credit Officer	PO BOX 30918, BILLINGS MT 59116
Thomas Edward Henning	director	121 SOUTH 13TH STREET, SUITE 100, LINCOLN NE 68508
Timothy Roy Kintner	officer: Regional Pres. and Former EVP	C/O GREAT WESTERN BANCORP, INC. 225 S MAIN AVENUE SIOUX FALLS SD 57104
Stephen Mark Lacy	director	C/O GREAT WESTERN BANCORP, INC., 100 NORTH PHILLIPS AVE, SIOUX FALLS SD 57104
Scott Edward Erkonen	officer: Chief Information Officer	C/O GREAT WESTERN BANCORP, INC., 225 S MAIN AVENUE, SIOUX FALLS SD 57104
Michael Gough	officer: Former EVP and CCO	C/O GREAT WESTERN BANCORP, INC. 225 S MAIN AVENUE SIOUX FALLS SD 57104
James Israel	director	ONE JOHN DEERE PLACE, MOLINE IL 61265