Discounted Cash Flow (DCF) Analysis Levered

Extra Space Storage Inc. (EXR)

$157.16

+1.12 (+0.72%)
All numbers are in Millions, Currency in USD
Stock DCF: 235.99 | 157.16 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,105.011,196.601,308.451,356.211,577.361,725.611,887.782,065.202,259.292,471.62
Revenue (%)
Operating Cash Flow 597.38677.80707.69771.23952.44973.371,064.851,164.931,274.411,394.18
Operating Cash Flow (%)
Capital Expenditure -7.82-4.30-7.76-7.09-3.66-8.33-9.12-9.98-10.91-11.94
Capital Expenditure (%)
Free Cash Flow 589.56673.50699.92764.14948.78965.041,055.731,154.951,263.501,382.24

Weighted Average Cost Of Capital

Share price $ 157.16
Beta 0.541
Diluted Shares Outstanding 140.02
Cost of Debt
Tax Rate 7.84
After-tax Cost of Debt 2.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.962
Total Debt 6,191.10
Total Equity 22,004.92
Total Capital 28,196.02
Debt Weighting 21.96
Equity Weighting 78.04
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,105.011,196.601,308.451,356.211,577.361,725.611,887.782,065.202,259.292,471.62
Operating Cash Flow 597.38677.80707.69771.23952.44973.371,064.851,164.931,274.411,394.18
Capital Expenditure -7.82-4.30-7.76-7.09-3.66-8.33-9.12-9.98-10.91-11.94
Free Cash Flow 589.56673.50699.92764.14948.78965.041,055.731,154.951,263.501,382.24
WACC
PV LFCF 917.34953.94992.011,031.601,072.77
SUM PV LFCF 4,967.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.20
Free cash flow (t + 1) 1,409.89
Terminal Value 44,059
Present Value of Terminal Value 34,194.48

Intrinsic Value

Enterprise Value 39,162.14
Net Debt 6,119.98
Equity Value 33,042.16
Shares Outstanding 140.02
Equity Value Per Share 235.99