Discounted Cash Flow (DCF) Analysis Levered

Equity Commonwealth (EQC)

$18.95

+0.12 (+0.64%)
All numbers are in Millions, Currency in USD
Stock DCF: 30.01 | 18.95 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 127.8566.285863.1460.5252.0644.7838.5233.1328.50
Revenue (%)
Operating Cash Flow 98.9433.3316.1165.04122.2747.9541.2435.4730.5126.25
Operating Cash Flow (%)
Capital Expenditure -26.05-12.04-6.80-3.58-5.69-6.80-5.85-5.03-4.33-3.72
Capital Expenditure (%)
Free Cash Flow 72.8921.299.3161.46116.5841.1435.3930.4426.1822.52

Weighted Average Cost Of Capital

Share price $ 18.95
Beta 0.337
Diluted Shares Outstanding 110.19
Cost of Debt
Tax Rate 2.30
After-tax Cost of Debt 4.88%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.750
Total Debt -
Total Equity 2,088.01
Total Capital 2,088.01
Debt Weighting 0.00
Equity Weighting 100.00
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 127.8566.285863.1460.5252.0644.7838.5233.1328.50
Operating Cash Flow 98.9433.3316.1165.04122.2747.9541.2435.4730.5126.25
Capital Expenditure -26.05-12.04-6.80-3.58-5.69-6.80-5.85-5.03-4.33-3.72
Free Cash Flow 72.8921.299.3161.46116.5841.1435.3930.4426.1822.52
WACC
PV LFCF 29.4223.9319.4615.8312.88
SUM PV LFCF 134.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.75
Free cash flow (t + 1) 23.42
Terminal Value 1,338.52
Present Value of Terminal Value 1,012.10

Intrinsic Value

Enterprise Value 1,146.36
Net Debt -2,160.53
Equity Value 3,306.90
Shares Outstanding 110.19
Equity Value Per Share 30.01