Discounted Cash Flow (DCF) Analysis Levered

CatchMark Timber Trust, Inc. (CTT)

$10.37

-0.15 (-1.43%)

All numbers are in Millions, Currency in USD

Stock DCF: 7.40 | 10.37 | 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	91.30	97.86	106.71	104.29	102.16	105.21	108.34	111.57	114.90	118.33
Revenue (%)
Operating Cash Flow	27.42	29.80	32.94	40.46	47.17	37.10	38.21	39.34	40.52	41.72
Operating Cash Flow (%)
Capital Expenditure	-5.62	-4.57	-4.18	-5.53	-4.91	-5.23	-5.38	-5.54	-5.71	-5.88
Capital Expenditure (%)
Free Cash Flow	21.80	25.23	28.76	34.93	42.26	31.87	32.82	33.80	34.81	35.85

Weighted Average Cost Of Capital

Share price	$ 10.37
Beta	1.123
Diluted Shares Outstanding	48.48
Cost of Debt
Tax Rate	1.38
After-tax Cost of Debt	4.15%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.992
Total Debt	300.95
Total Equity	502.75
Total Capital	803.70
Debt Weighting	37.45
Equity Weighting	62.55
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	91.30	97.86	106.71	104.29	102.16	105.21	108.34	111.57	114.90	118.33
Operating Cash Flow	27.42	29.80	32.94	40.46	47.17	37.10	38.21	39.34	40.52	41.72
Capital Expenditure	-5.62	-4.57	-4.18	-5.53	-4.91	-5.23	-5.38	-5.54	-5.71	-5.88
Free Cash Flow	21.80	25.23	28.76	34.93	42.26	31.87	32.82	33.80	34.81	35.85
WACC
PV LFCF						29.74	28.57	27.45	26.38	25.34
SUM PV LFCF										137.48

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.18
Free cash flow (t + 1)	36.56
Terminal Value	705.85
Present Value of Terminal Value	499.05

Intrinsic Value

Enterprise Value	636.53
Net Debt	277.99
Equity Value	358.54
Shares Outstanding	48.48
Equity Value Per Share	7.40