Discounted Cash Flow (DCF) Analysis Levered

American Campus Communities, Inc. (ACC)

$65.42

+0.05 (+0.08%)
All numbers are in Millions, Currency in USD
Stock DCF: 33.06 | 65.42 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 796.45880.81943.04870.58942.41985.351,030.241,077.181,126.261,177.57
Revenue (%)
Operating Cash Flow 319.95376.62370.38351.12334.80390.32408.10426.70446.14466.47
Operating Cash Flow (%)
Capital Expenditure -86.26-74.46-73.74-60.41-68.96-81.51-85.22-89.10-93.16-97.41
Capital Expenditure (%)
Free Cash Flow 233.70302.16296.64290.71265.84308.81322.88337.59352.98369.06

Weighted Average Cost Of Capital

Share price $ 65.42
Beta 0.744
Diluted Shares Outstanding 138.71
Cost of Debt
Tax Rate -2.44
After-tax Cost of Debt 2.94%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.339
Total Debt 4,006.34
Total Equity 9,074.44
Total Capital 13,080.77
Debt Weighting 30.63
Equity Weighting 69.37
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 796.45880.81943.04870.58942.41985.351,030.241,077.181,126.261,177.57
Operating Cash Flow 319.95376.62370.38351.12334.80390.32408.10426.70446.14466.47
Capital Expenditure -86.26-74.46-73.74-60.41-68.96-81.51-85.22-89.10-93.16-97.41
Free Cash Flow 233.70302.16296.64290.71265.84308.81322.88337.59352.98369.06
WACC
PV LFCF 291.36287.42283.53279.70275.91
SUM PV LFCF 1,417.92

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.99
Free cash flow (t + 1) 376.44
Terminal Value 9,434.55
Present Value of Terminal Value 7,053.37

Intrinsic Value

Enterprise Value 8,471.29
Net Debt 3,885.99
Equity Value 4,585.30
Shares Outstanding 138.71
Equity Value Per Share 33.06