Discounted Cash Flow (DCF) Analysis Levered

Physicians Realty Trust (DOC)

$17.5

+0.04 (+0.23%)
All numbers are in Millions, Currency in USD
Stock DCF: 26.09 | 17.5 | 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 335.10410.99404.38437.50457.70496.43538.43584633.41687.01
Revenue (%)
Operating Cash Flow 180.47208.69201.18233.30247.55259.92281.92305.77331.65359.71
Operating Cash Flow (%)
Capital Expenditure -23.24-34.64-40.14-33.89-32.57-39.86-43.24-46.90-50.86-55.17
Capital Expenditure (%)
Free Cash Flow 157.23174.06161.04199.41214.99220.06238.68258.88280.78304.54

Weighted Average Cost Of Capital

Share price $ 17.5
Beta 0.781
Diluted Shares Outstanding 223.06
Cost of Debt
Tax Rate 3.25
After-tax Cost of Debt 2.88%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.892
Total Debt 2,016.88
Total Equity 3,903.56
Total Capital 5,920.43
Debt Weighting 34.07
Equity Weighting 65.93
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 335.10410.99404.38437.50457.70496.43538.43584633.41687.01
Operating Cash Flow 180.47208.69201.18233.30247.55259.92281.92305.77331.65359.71
Capital Expenditure -23.24-34.64-40.14-33.89-32.57-39.86-43.24-46.90-50.86-55.17
Free Cash Flow 157.23174.06161.04199.41214.99220.06238.68258.88280.78304.54
WACC
PV LFCF 208.53214.32220.28226.40232.69
SUM PV LFCF 1,102.21

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.53
Free cash flow (t + 1) 310.63
Terminal Value 8,799.85
Present Value of Terminal Value 6,723.50

Intrinsic Value

Enterprise Value 7,825.72
Net Debt 2,007
Equity Value 5,818.72
Shares Outstanding 223.06
Equity Value Per Share 26.09