Discounted Cash Flow (DCF) Analysis Levered

Empire State Realty Trust, Inc. (ESRT)

$6.155

-0.07 (-1.04%)

All numbers are in Millions, Currency in USD

Stock DCF: -8.27 | 6.155 | 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	731.51	731.34	609.23	624.09	727.04	731.07	735.12	739.19	743.28	747.40
Revenue (%)
Operating Cash Flow	279.02	232.59	182.29	212.49	211.17	238.27	239.59	240.92	242.25	243.59
Operating Cash Flow (%)
Capital Expenditure	-243.02	-250.26	-205.43	-210.45	-245.16	-246.52	-247.88	-249.26	-250.64	-252.03
Capital Expenditure (%)
Free Cash Flow	36	-17.67	-23.14	2.04	-33.99	-8.25	-8.29	-8.34	-8.39	-8.43

Weighted Average Cost Of Capital

Share price	$ 6.155
Beta	1.199
Diluted Shares Outstanding	269.95
Cost of Debt
Tax Rate	37.24
After-tax Cost of Debt	2.79%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.295
Total Debt	2,274.81
Total Equity	1,661.53
Total Capital	3,936.34
Debt Weighting	57.79
Equity Weighting	42.21
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	731.51	731.34	609.23	624.09	727.04	731.07	735.12	739.19	743.28	747.40
Operating Cash Flow	279.02	232.59	182.29	212.49	211.17	238.27	239.59	240.92	242.25	243.59
Capital Expenditure	-243.02	-250.26	-205.43	-210.45	-245.16	-246.52	-247.88	-249.26	-250.64	-252.03
Free Cash Flow	36	-17.67	-23.14	2.04	-33.99	-8.25	-8.29	-8.34	-8.39	-8.43
WACC
PV LFCF						-5.97	-5.69	-5.42	-5.16	-4.92
SUM PV LFCF										-35.55

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.54
Free cash flow (t + 1)	-8.60
Terminal Value	-242.95
Present Value of Terminal Value	-185.54

Intrinsic Value

Enterprise Value	-221.09
Net Debt	2,010.37
Equity Value	-2,231.46
Shares Outstanding	269.95
Equity Value Per Share	-8.27