Discounted Cash Flow (DCF) Analysis Levered

Brandywine Realty Trust (BDN)

$4.11

+0.25 (+6.48%)

All numbers are in Millions, Currency in USD

Stock DCF: -7.71 | 4.11 | overvalue

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	544.35	580.42	534.85	486.82	506.10	498.20	490.42	482.77	475.23	467.81
Revenue (%)
Operating Cash Flow	227.35	234.23	225.81	190.87	209.31	204.17	200.98	197.84	194.75	191.71
Operating Cash Flow (%)
Capital Expenditure	-212.60	-198.30	-160.25	-135.12	-263.01	-182.25	-179.40	-176.60	-173.85	-171.13
Capital Expenditure (%)
Free Cash Flow	14.75	35.93	65.56	55.75	-53.71	21.92	21.58	21.24	20.91	20.58

Weighted Average Cost Of Capital

Share price	$ 4.11
Beta	1.105
Diluted Shares Outstanding	172.33
Cost of Debt
Tax Rate	0.41
After-tax Cost of Debt	3.60%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.906
Total Debt	1,988.20
Total Equity	708.26
Total Capital	2,696.46
Debt Weighting	73.73
Equity Weighting	26.27
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	544.35	580.42	534.85	486.82	506.10	498.20	490.42	482.77	475.23	467.81
Operating Cash Flow	227.35	234.23	225.81	190.87	209.31	204.17	200.98	197.84	194.75	191.71
Capital Expenditure	-212.60	-198.30	-160.25	-135.12	-263.01	-182.25	-179.40	-176.60	-173.85	-171.13
Free Cash Flow	14.75	35.93	65.56	55.75	-53.71	21.92	21.58	21.24	20.91	20.58
WACC
PV LFCF						20.88	19.57	18.35	17.21	16.13
SUM PV LFCF										92.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.99
Free cash flow (t + 1)	20.99
Terminal Value	702.13
Present Value of Terminal Value	550.40

Intrinsic Value

Enterprise Value	642.55
Net Debt	1,970.65
Equity Value	-1,328.10
Shares Outstanding	172.33
Equity Value Per Share	-7.71