Discounted Cash Flow (DCF) Analysis Levered

Diversified Healthcare Trust (DHC)

$0.8451

-0.15 (-15.06%)
All numbers are in Millions, Currency in USD
Stock DCF: 14.53 | 0.8451 | undervalue

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 1,074.821,117.161,040.161,632.031,383.211,517.051,663.831,824.822,001.392,195.04
Revenue (%)
Operating Cash Flow 407.05392.84265.84158.54-63.32314.73345.18378.58415.21455.38
Operating Cash Flow (%)
Capital Expenditure -221.4399.09-18.81-73.66-62.43-68.47-75.10-82.37-90.33-99.07
Capital Expenditure (%)
Free Cash Flow 185.62491.93247.0384.88-125.76246.25270.08296.21324.87356.31

Weighted Average Cost Of Capital

Share price $ 0.8,451
Beta 1.602
Diluted Shares Outstanding 237.74
Cost of Debt
Tax Rate 3.77
After-tax Cost of Debt 6.69%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.160
Total Debt 3,679.08
Total Equity 200.91
Total Capital 3,879.99
Debt Weighting 94.82
Equity Weighting 5.18
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 1,074.821,117.161,040.161,632.031,383.211,517.051,663.831,824.822,001.392,195.04
Operating Cash Flow 407.05392.84265.84158.54-63.32314.73345.18378.58415.21455.38
Capital Expenditure -221.4399.09-18.81-73.66-62.43-68.47-75.10-82.37-90.33-99.07
Free Cash Flow 185.62491.93247.0384.88-125.76246.25270.08296.21324.87356.31
WACC
PV LFCF 230.32236.25242.34248.59254.99
SUM PV LFCF 1,212.49

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.92
Free cash flow (t + 1) 363.43
Terminal Value 7,386.88
Present Value of Terminal Value 5,286.48

Intrinsic Value

Enterprise Value 6,498.97
Net Debt 3,044.23
Equity Value 3,454.74
Shares Outstanding 237.74
Equity Value Per Share 14.53