Discounted Cash Flow (DCF) Analysis Levered

CareTrust REIT, Inc. (CTRE)

$20.5

-0.01 (0.00%)

All numbers are in Millions, Currency in USD

Stock DCF: -23.66 | 20.5 | 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	155.38	159.06	175.69	190.19	187.51	196.73	206.40	216.55	227.20	238.37
Revenue (%)
Operating Cash Flow	99.36	126.30	145.74	156.87	144.41	151.79	159.26	167.09	175.30	183.92
Operating Cash Flow (%)
Capital Expenditure	-107.65	-110.20	-121.72	-131.77	-129.91	-136.30	-143	-150.03	-157.41	-165.15
Capital Expenditure (%)
Free Cash Flow	-8.29	16.10	24.01	25.10	14.51	15.50	16.26	17.06	17.90	18.78

Weighted Average Cost Of Capital

Share price	$ 20.5
Beta	1.123
Diluted Shares Outstanding	96.70
Cost of Debt
Tax Rate	671.17
After-tax Cost of Debt	-23.82%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.872
Total Debt	719.50
Total Equity	1,982.41
Total Capital	2,701.91
Debt Weighting	26.63
Equity Weighting	73.37
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	155.38	159.06	175.69	190.19	187.51	196.73	206.40	216.55	227.20	238.37
Operating Cash Flow	99.36	126.30	145.74	156.87	144.41	151.79	159.26	167.09	175.30	183.92
Capital Expenditure	-107.65	-110.20	-121.72	-131.77	-129.91	-136.30	-143	-150.03	-157.41	-165.15
Free Cash Flow	-8.29	16.10	24.01	25.10	14.51	15.50	16.26	17.06	17.90	18.78
WACC
PV LFCF						15.36	15.97	16.61	17.27	17.95
SUM PV LFCF										83.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	0.90
Free cash flow (t + 1)	19.15
Terminal Value	-1,741.12
Present Value of Terminal Value	-1,664.84

Intrinsic Value

Enterprise Value	-1,581.69
Net Debt	706.32
Equity Value	-2,288.01
Shares Outstanding	96.70
Equity Value Per Share	-23.66