Discounted Cash Flow (DCF) Analysis Levered

Canadian Apartment Properties Real ... (CAR-UN.TO)

$48.77

+0.52 (+1.08%)
All numbers are in Millions, Currency in USD
Stock DCF: -67.89 | 48.77 | overvalue

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 638.84688.58777.88882.64933.141,026.321,128.801,241.521,365.501,501.85
Revenue (%)
Operating Cash Flow 358.94431.18454.63481.36551.43597.07656.69722.26794.39873.71
Operating Cash Flow (%)
Capital Expenditure -454.60-400.28-1,342.15-244.86-299.42-742.35-816.48-898.01-987.68-1,086.31
Capital Expenditure (%)
Free Cash Flow -95.6630.90-887.52236.50252.01-145.28-159.79-175.75-193.30-212.60

Weighted Average Cost Of Capital

Share price $ 48.77
Beta 1.022
Diluted Shares Outstanding 171.12
Cost of Debt
Tax Rate 5.51
After-tax Cost of Debt 2.20%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.348
Total Debt 6,460.37
Total Equity 8,345.67
Total Capital 14,806.03
Debt Weighting 43.63
Equity Weighting 56.37
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 638.84688.58777.88882.64933.141,026.321,128.801,241.521,365.501,501.85
Operating Cash Flow 358.94431.18454.63481.36551.43597.07656.69722.26794.39873.71
Capital Expenditure -454.60-400.28-1,342.15-244.86-299.42-742.35-816.48-898.01-987.68-1,086.31
Free Cash Flow -95.6630.90-887.52236.50252.01-145.28-159.79-175.75-193.30-212.60
WACC
PV LFCF -123.13-128.16-133.39-138.84-144.51
SUM PV LFCF -745.92

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.67
Free cash flow (t + 1) -216.85
Terminal Value -5,908.69
Present Value of Terminal Value -4,484.69

Intrinsic Value

Enterprise Value -5,230.62
Net Debt 6,386.95
Equity Value -11,617.57
Shares Outstanding 171.12
Equity Value Per Share -67.89