Discounted Cash Flow (DCF) Analysis Levered

American Finance Trust, Inc. (AFIN)

$8.23

-0.03 (-0.36%)

All numbers are in Millions, Currency in USD

Stock DCF: 96.32 | 8.23 | undervalue

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	270.91	291.21	299.74	305.22	335.16	353.64	373.14	393.72	415.43	438.34
Revenue (%)
Operating Cash Flow	92.46	95.04	105.57	92.72	145.23	124.26	131.12	138.35	145.98	154.03
Operating Cash Flow (%)
Capital Expenditure	-8.92	-10.43	-13.65	-9.20	-13.41	-13.04	-13.76	-14.52	-15.32	-16.17
Capital Expenditure (%)
Free Cash Flow	83.55	84.61	91.92	83.52	131.82	111.22	117.36	123.83	130.66	137.86

Weighted Average Cost Of Capital

Share price	$ 8.23
Beta	1.400
Diluted Shares Outstanding	28.95
Cost of Debt
Tax Rate	-203.50
After-tax Cost of Debt	3.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.233
Total Debt	2,053.21
Total Equity	238.30
Total Capital	2,291.51
Debt Weighting	89.60
Equity Weighting	10.40
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	270.91	291.21	299.74	305.22	335.16	353.64	373.14	393.72	415.43	438.34
Operating Cash Flow	92.46	95.04	105.57	92.72	145.23	124.26	131.12	138.35	145.98	154.03
Capital Expenditure	-8.92	-10.43	-13.65	-9.20	-13.41	-13.04	-13.76	-14.52	-15.32	-16.17
Free Cash Flow	83.55	84.61	91.92	83.52	131.82	111.22	117.36	123.83	130.66	137.86
WACC
PV LFCF						106.20	106.99	107.80	108.60	109.42
SUM PV LFCF										539.01

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.73
Free cash flow (t + 1)	140.62
Terminal Value	5,150.87
Present Value of Terminal Value	4,088.13

Intrinsic Value

Enterprise Value	4,627.15
Net Debt	1,838.36
Equity Value	2,788.79
Shares Outstanding	28.95
Equity Value Per Share	96.32