Discounted Cash Flow (DCF) Analysis Levered

Saul Centers, Inc. (BFS)

$34.1

+0.37 (+1.10%)

All numbers are in Millions, Currency in USD

Stock DCF: 78.71 | 34.1 | 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	231.53	225.21	239.23	245.86	251	256.24	261.60	267.06	272.65	278.34
Revenue (%)
Operating Cash Flow	115.38	78.38	118.38	121.15	115.08	117.49	119.94	122.45	125.01	127.62
Operating Cash Flow (%)
Capital Expenditure	-	-	-	19.01	19.40	19.81	20.22	20.65	21.08	21.52
Capital Expenditure (%)
Free Cash Flow	115.38	78.38	118.38	140.16	134.49	137.30	140.17	143.10	146.09	149.14

Weighted Average Cost Of Capital

Share price	$ 34.1
Beta	1.135
Diluted Shares Outstanding	23.66
Cost of Debt
Tax Rate	0.00
After-tax Cost of Debt	5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.166
Total Debt	961.58
Total Equity	806.87
Total Capital	1,768.45
Debt Weighting	54.37
Equity Weighting	45.63
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	231.53	225.21	239.23	245.86	251	256.24	261.60	267.06	272.65	278.34
Operating Cash Flow	115.38	78.38	118.38	121.15	115.08	117.49	119.94	122.45	125.01	127.62
Capital Expenditure	-	-	-	19.01	19.40	19.81	20.22	20.65	21.08	21.52
Free Cash Flow	115.38	78.38	118.38	140.16	134.49	137.30	140.17	143.10	146.09	149.14
WACC
PV LFCF					134.49	128.44	122.66	117.14	111.87	106.83
SUM PV LFCF										586.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.90
Free cash flow (t + 1)	152.12
Terminal Value	3,104.53
Present Value of Terminal Value	2,223.86

Intrinsic Value

Enterprise Value	2,810.78
Net Debt	948.30
Equity Value	1,862.49
Shares Outstanding	23.66
Equity Value Per Share	78.71