Discounted Cash Flow (DCF) Analysis Levered

Empire State Realty OP, L.P. (ESBA)

$9.32

+0.51 (+5.79%)

All numbers are in Millions, Currency in USD

Stock DCF: -6.40 | 9.32 | 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	732.74	731.34	609.23	624.09	727.04	730.76	734.51	738.27	742.05	745.85
Revenue (%)
Operating Cash Flow	279.02	232.59	182.29	212.49	211.17	238.08	239.30	240.52	241.75	242.99
Operating Cash Flow (%)
Capital Expenditure	-243.02	-250.25	-143.12	-189.05	-220.24	-221.36	-222.50	-223.64	-224.78	-225.93
Capital Expenditure (%)
Free Cash Flow	36	-17.66	39.17	23.43	-9.06	16.71	16.80	16.89	16.97	17.06

Weighted Average Cost Of Capital

Share price	$ 9.32
Beta	1.362
Diluted Shares Outstanding	269.95
Cost of Debt
Tax Rate	2.39
After-tax Cost of Debt	4.34%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.586
Total Debt	2,274.81
Total Equity	2,515.92
Total Capital	4,790.72
Debt Weighting	47.48
Equity Weighting	52.52
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	732.74	731.34	609.23	624.09	727.04	730.76	734.51	738.27	742.05	745.85
Operating Cash Flow	279.02	232.59	182.29	212.49	211.17	238.08	239.30	240.52	241.75	242.99
Capital Expenditure	-243.02	-250.25	-143.12	-189.05	-220.24	-221.36	-222.50	-223.64	-224.78	-225.93
Free Cash Flow	36	-17.66	39.17	23.43	-9.06	16.71	16.80	16.89	16.97	17.06
WACC
PV LFCF						15.53	14.51	13.55	12.65	11.82
SUM PV LFCF										68.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.62
Free cash flow (t + 1)	17.40
Terminal Value	309.63
Present Value of Terminal Value	214.47

Intrinsic Value

Enterprise Value	282.53
Net Debt	2,010.37
Equity Value	-1,727.85
Shares Outstanding	269.95
Equity Value Per Share	-6.40