Discounted Cash Flow (DCF) Analysis Levered

Community Healthcare Trust Incorpor... (CHCT)

$27.5

+0.40 (+1.48%)

All numbers are in Millions, Currency in USD

Stock DCF: 81.72 | 27.5 | undervalue

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	48.63	60.85	75.68	90.58	97.68	116.49	138.92	165.67	197.57	235.62
Revenue (%)
Operating Cash Flow	24.44	32.36	48.37	56.35	60.28	67.86	80.93	96.51	115.10	137.26
Operating Cash Flow (%)
Capital Expenditure	-4.56	-4.37	-6.99	-7.22	-10.38	-10.34	-12.33	-14.71	-17.54	-20.92
Capital Expenditure (%)
Free Cash Flow	19.88	27.99	41.38	49.13	49.90	57.52	68.59	81.80	97.56	116.34

Weighted Average Cost Of Capital

Share price	$ 27.5
Beta	0.765
Diluted Shares Outstanding	23.63
Cost of Debt
Tax Rate	0.19
After-tax Cost of Debt	4.15%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.767
Total Debt	353
Total Equity	649.85
Total Capital	1,002.85
Debt Weighting	35.20
Equity Weighting	64.80
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	48.63	60.85	75.68	90.58	97.68	116.49	138.92	165.67	197.57	235.62
Operating Cash Flow	24.44	32.36	48.37	56.35	60.28	67.86	80.93	96.51	115.10	137.26
Capital Expenditure	-4.56	-4.37	-6.99	-7.22	-10.38	-10.34	-12.33	-14.71	-17.54	-20.92
Free Cash Flow	19.88	27.99	41.38	49.13	49.90	57.52	68.59	81.80	97.56	116.34
WACC
PV LFCF						54.01	60.49	67.74	75.86	84.95
SUM PV LFCF										343.06

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.49
Free cash flow (t + 1)	118.67
Terminal Value	2,642.93
Present Value of Terminal Value	1,929.93

Intrinsic Value

Enterprise Value	2,272.99
Net Debt	341.76
Equity Value	1,931.22
Shares Outstanding	23.63
Equity Value Per Share	81.72