Discounted Cash Flow (DCF) Analysis Levered

Essential Properties Realty Trust, ... (EPRT)

$24.34

-0.18 (-0.73%)

All numbers are in Millions, Currency in USD

Stock DCF: 15.03 | 24.34 | 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	96.22	139.36	164.01	230.23	-20.62	-20.30	-20	-19.69	-19.39	-19.10
Revenue (%)
Operating Cash Flow	45.92	88.57	99.39	167.39	211.02	31.63	31.15	30.68	30.22	29.76
Operating Cash Flow (%)
Capital Expenditure	-505.32	-587.35	-776.28	-1,089.73	97.57	96.10	94.64	93.21	91.80	90.41
Capital Expenditure (%)
Free Cash Flow	-459.40	-498.78	-676.89	-922.34	308.60	127.73	125.80	123.89	122.01	120.17

Weighted Average Cost Of Capital

Share price	$ 24.34
Beta	1.289
Diluted Shares Outstanding	96.20
Cost of Debt
Tax Rate	100.00
After-tax Cost of Debt	0.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.779
Total Debt	395.29
Total Equity	2,341.45
Total Capital	2,736.74
Debt Weighting	14.44
Equity Weighting	85.56
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	96.22	139.36	164.01	230.23	-20.62	-20.30	-20	-19.69	-19.39	-19.10
Operating Cash Flow	45.92	88.57	99.39	167.39	211.02	31.63	31.15	30.68	30.22	29.76
Capital Expenditure	-505.32	-587.35	-776.28	-1,089.73	97.57	96.10	94.64	93.21	91.80	90.41
Free Cash Flow	-459.40	-498.78	-676.89	-922.34	308.60	127.73	125.80	123.89	122.01	120.17
WACC
PV LFCF						117.86	107.11	97.34	88.47	80.40
SUM PV LFCF										491.18

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.37
Free cash flow (t + 1)	122.57
Terminal Value	1,924.17
Present Value of Terminal Value	1,287.35

Intrinsic Value

Enterprise Value	1,778.54
Net Debt	332.94
Equity Value	1,445.60
Shares Outstanding	96.20
Equity Value Per Share	15.03