Discounted Cash Flow (DCF) Analysis Levered

CubeSmart (CUBE)

$46.22

+1.19 (+2.64%)

All numbers are in Millions, Currency in USD

Stock DCF: 70.46 | 46.22 | 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	597.94	643.91	679.18	822.56	1,009.62	1,153.54	1,317.97	1,505.84	1,720.48	1,965.73
Revenue (%)
Operating Cash Flow	304.34	331.77	351.03	449.19	591.47	616.67	704.58	805.01	919.76	1,050.86
Operating Cash Flow (%)
Capital Expenditure	-86	-102.83	-103.07	-124.83	-153.22	-175.06	-200.01	-228.52	-261.10	-298.32
Capital Expenditure (%)
Free Cash Flow	218.33	228.94	247.96	324.35	438.25	441.61	504.56	576.48	658.66	752.55

Weighted Average Cost Of Capital

Share price	$ 46.22
Beta	0.591
Diluted Shares Outstanding	225.88
Cost of Debt
Tax Rate	0.41
After-tax Cost of Debt	3.04%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.282
Total Debt	3,061.93
Total Equity	10,440.22
Total Capital	13,502.15
Debt Weighting	22.68
Equity Weighting	77.32
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	597.94	643.91	679.18	822.56	1,009.62	1,153.54	1,317.97	1,505.84	1,720.48	1,965.73
Operating Cash Flow	304.34	331.77	351.03	449.19	591.47	616.67	704.58	805.01	919.76	1,050.86
Capital Expenditure	-86	-102.83	-103.07	-124.83	-153.22	-175.06	-200.01	-228.52	-261.10	-298.32
Free Cash Flow	218.33	228.94	247.96	324.35	438.25	441.61	504.56	576.48	658.66	752.55
WACC
PV LFCF						418.39	452.90	490.24	530.67	574.44
SUM PV LFCF										2,466.64

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.55
Free cash flow (t + 1)	767.60
Terminal Value	21,622.44
Present Value of Terminal Value	16,504.92

Intrinsic Value

Enterprise Value	18,971.56
Net Debt	3,055.86
Equity Value	15,915.70
Shares Outstanding	225.88
Equity Value Per Share	70.46