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: 35.13 | 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	796.45	880.81	943.04	870.58	942.41	985.35	1,030.24	1,077.18	1,126.26	1,177.57
Revenue (%)
Operating Cash Flow	319.95	376.62	370.38	351.12	334.80	390.32	408.10	426.70	446.14	466.47
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	233.70	302.16	296.64	290.71	265.84	308.81	322.88	337.59	352.98	369.06

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	7.150
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	796.45	880.81	943.04	870.58	942.41	985.35	1,030.24	1,077.18	1,126.26	1,177.57
Operating Cash Flow	319.95	376.62	370.38	351.12	334.80	390.32	408.10	426.70	446.14	466.47
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	233.70	302.16	296.64	290.71	265.84	308.81	322.88	337.59	352.98	369.06
WACC
PV LFCF						291.72	288.13	284.58	281.07	277.61
SUM PV LFCF										1,423.10

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.86
Free cash flow (t + 1)	376.44
Terminal Value	9,752.29
Present Value of Terminal Value	7,335.80

Intrinsic Value

Enterprise Value	8,758.90
Net Debt	3,885.99
Equity Value	4,872.91
Shares Outstanding	138.71
Equity Value Per Share	35.13