Discounted Cash Flow (DCF) Analysis Levered

Apple Hospitality REIT, Inc. (APLE)

$14.51

-0.03 (-0.21%)
All numbers are in Millions, Currency in USD
Stock DCF: 20.76 | 14.51 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 1,266.60601.88933.871,238.421,384.101,546.911,728.881,932.252,159.542,413.58
Revenue (%)
Operating Cash Flow 381.6726.73217.56368.45303.20338.86378.72423.27473.06528.71
Operating Cash Flow (%)
Capital Expenditure -74.90-48.56-18.31-59.38-71.75-80.19-89.63-100.17-111.95-125.12
Capital Expenditure (%)
Free Cash Flow 306.78-21.83199.25309.07231.44258.67289.10323.10361.11403.59

Weighted Average Cost Of Capital

Share price $ 14.51
Beta 1.191
Diluted Shares Outstanding 228.95
Cost of Debt
Tax Rate 1.32
After-tax Cost of Debt 4.93%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.432
Total Debt 111.99
Total Equity 3,322.01
Total Capital 3,434
Debt Weighting 3.26
Equity Weighting 96.74
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 1,266.60601.88933.871,238.421,384.101,546.911,728.881,932.252,159.542,413.58
Operating Cash Flow 381.6726.73217.56368.45303.20338.86378.72423.27473.06528.71
Capital Expenditure -74.90-48.56-18.31-59.38-71.75-80.19-89.63-100.17-111.95-125.12
Free Cash Flow 306.78-21.83199.25309.07231.44258.67289.10323.10361.11403.59
WACC
PV LFCF 231.44236.68242.04247.51253.11258.84
SUM PV LFCF 1,238.19

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.29
Free cash flow (t + 1) 411.66
Terminal Value 5,646.91
Present Value of Terminal Value 3,621.67

Intrinsic Value

Enterprise Value 4,859.86
Net Debt 105.90
Equity Value 4,753.96
Shares Outstanding 228.95
Equity Value Per Share 20.76