Discounted Cash Flow (DCF) Analysis Levered
Apple Hospitality REIT, Inc. (APLE)
$14.06
+0.21 (+1.52%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 1,270.56 | 1,266.60 | 601.88 | 933.87 | 1,238.42 | 1,346.71 | 1,464.47 | 1,592.54 | 1,731.80 | 1,883.23 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 404.81 | 381.67 | 26.73 | 217.56 | 368.45 | 321.82 | 349.96 | 380.56 | 413.84 | 450.03 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -74.29 | -74.90 | -48.56 | -18.31 | -59.38 | -71.60 | -77.86 | -84.67 | -92.08 | -100.13 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 330.52 | 306.78 | -21.83 | 199.25 | 309.07 | 250.22 | 272.10 | 295.89 | 321.77 | 349.91 |
Weighted Average Cost Of Capital
Share price | $ 14.06 |
---|---|
Beta | 1.191 |
Diluted Shares Outstanding | 228.95 |
Cost of Debt | |
Tax Rate | 1.32 |
After-tax Cost of Debt | 3.99% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 9.002 |
Total Debt | 1,478.26 |
Total Equity | 3,218.98 |
Total Capital | 4,697.24 |
Debt Weighting | 31.47 |
Equity Weighting | 68.53 |
Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 1,270.56 | 1,266.60 | 601.88 | 933.87 | 1,238.42 | 1,346.71 | 1,464.47 | 1,592.54 | 1,731.80 | 1,883.23 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 404.81 | 381.67 | 26.73 | 217.56 | 368.45 | 321.82 | 349.96 | 380.56 | 413.84 | 450.03 |
Capital Expenditure | -74.29 | -74.90 | -48.56 | -18.31 | -59.38 | -71.60 | -77.86 | -84.67 | -92.08 | -100.13 |
Free Cash Flow | 330.52 | 306.78 | -21.83 | 199.25 | 309.07 | 250.22 | 272.10 | 295.89 | 321.77 | 349.91 |
WACC | ||||||||||
PV LFCF | 216.85 | 219.52 | 222.23 | 224.97 | 227.74 | |||||
SUM PV LFCF | 1,193.76 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.42 |
Free cash flow (t + 1) | 356.90 |
Terminal Value | 6,584.93 |
Present Value of Terminal Value | 4,603.90 |
Intrinsic Value
Enterprise Value | 5,797.65 |
---|---|
Net Debt | 1,474.18 |
Equity Value | 4,323.48 |
Shares Outstanding | 228.95 |
Equity Value Per Share | 18.88 |