Discounted Cash Flow (DCF) Analysis Levered

Equity Commonwealth (EQC)

$18.19

-0.05 (-0.27%)

All numbers are in Millions, Currency in USD

Stock DCF: 25.18 | 18.19 | 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	197.02	127.85	66.28	58	63.14	49.42	38.69	30.28	23.70	18.55
Revenue (%)
Operating Cash Flow	89.54	98.95	33.33	16.11	65.04	30.04	23.51	18.41	14.41	11.28
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	30.04	23.51	18.41	14.41	11.28

Weighted Average Cost Of Capital

Share price	$ 18.19
Beta	0.406
Diluted Shares Outstanding	112.83
Cost of Debt
Tax Rate	1.45
After-tax Cost of Debt	4.93%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.716
Total Debt	-
Total Equity	2,052.29
Total Capital	2,052.29
Debt Weighting	0.00
Equity Weighting	100.00
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	197.02	127.85	66.28	58	63.14	49.42	38.69	30.28	23.70	18.55
Operating Cash Flow	89.54	98.95	33.33	16.11	65.04	30.04	23.51	18.41	14.41	11.28
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	30.04	23.51	18.41	14.41	11.28
WACC
PV LFCF						28.15	20.65	15.14	11.11	8.15
SUM PV LFCF										83.19

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.72
Free cash flow (t + 1)	11.50
Terminal Value	243.71
Present Value of Terminal Value	176.05

Intrinsic Value

Enterprise Value	259.24
Net Debt	-2,582.22
Equity Value	2,841.46
Shares Outstanding	112.83
Equity Value Per Share	25.18