Discounted Cash Flow (DCF) Analysis Levered

Bluerock Residential Growth REIT, I... (BRG)

$26.6

-0.32 (-%)
All numbers are in Millions, Currency in USD
Stock DCF: 76.69 | 26.6 | 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 123.18184.72209.97219.85220.65258.54302.94354.97415.93487.36
Revenue (%)
Operating Cash Flow 54.2564.4663.3374.4882.0593.16109.15127.90149.86175.60
Operating Cash Flow (%)
Capital Expenditure -46.97-21.24-21.45-17.12-27.90-41.51-48.64-56.99-66.78-78.25
Capital Expenditure (%)
Free Cash Flow 7.2843.2241.8957.3654.1551.6560.5270.9183.0997.35

Weighted Average Cost Of Capital

Share price $ 26.6
Beta 0.812
Diluted Shares Outstanding 26.25
Cost of Debt
Tax Rate 12.78
After-tax Cost of Debt 3.37%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.363
Total Debt 1,364.99
Total Equity 698.25
Total Capital 2,063.24
Debt Weighting 66.16
Equity Weighting 33.84
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 123.18184.72209.97219.85220.65258.54302.94354.97415.93487.36
Operating Cash Flow 54.2564.4663.3374.4882.0593.16109.15127.90149.86175.60
Capital Expenditure -46.97-21.24-21.45-17.12-27.90-41.51-48.64-56.99-66.78-78.25
Free Cash Flow 7.2843.2241.8957.3654.1551.6560.5270.9183.0997.35
WACC
PV LFCF 49.3255.1861.7569.0977.30
SUM PV LFCF 312.64

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.72
Free cash flow (t + 1) 99.30
Terminal Value 3,650.76
Present Value of Terminal Value 2,898.91

Intrinsic Value

Enterprise Value 3,211.55
Net Debt 1,198.50
Equity Value 2,013.05
Shares Outstanding 26.25
Equity Value Per Share 76.69