Discounted Cash Flow (DCF) Analysis Levered

Chartwell Retirement Residences (CSH-UN.TO)

$9.08

+0.10 (+1.11%)

All numbers are in Millions, Currency in USD

Stock DCF: -8.83 | 9.08 | 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	862.80	910.81	924.71	903.61	706.80	676.81	648.09	620.60	594.26	569.05
Revenue (%)
Operating Cash Flow	219.36	196.55	184.62	156.32	137.71	140.44	134.48	128.78	123.31	118.08
Operating Cash Flow (%)
Capital Expenditure	-200.62	-199.19	-132.39	-115.34	-111.36	-119.06	-114.01	-109.17	-104.54	-100.11
Capital Expenditure (%)
Free Cash Flow	18.73	-2.64	52.23	40.98	26.35	21.38	20.47	19.60	18.77	17.97

Weighted Average Cost Of Capital

Share price	$ 9.08
Beta	1.155
Diluted Shares Outstanding	214.08
Cost of Debt
Tax Rate	-19.30
After-tax Cost of Debt	3.43%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.142
Total Debt	2,342.56
Total Equity	1,943.83
Total Capital	4,286.39
Debt Weighting	54.65
Equity Weighting	45.35
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	862.80	910.81	924.71	903.61	706.80	676.81	648.09	620.60	594.26	569.05
Operating Cash Flow	219.36	196.55	184.62	156.32	137.71	140.44	134.48	128.78	123.31	118.08
Capital Expenditure	-200.62	-199.19	-132.39	-115.34	-111.36	-119.06	-114.01	-109.17	-104.54	-100.11
Free Cash Flow	18.73	-2.64	52.23	40.98	26.35	21.38	20.47	19.60	18.77	17.97
WACC
PV LFCF						20.16	18.21	16.45	14.86	13.42
SUM PV LFCF										83.10

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.02
Free cash flow (t + 1)	18.33
Terminal Value	456.05
Present Value of Terminal Value	340.46

Intrinsic Value

Enterprise Value	423.56
Net Debt	2,314.09
Equity Value	-1,890.53
Shares Outstanding	214.08
Equity Value Per Share	-8.83