Discounted Cash Flow (DCF) Analysis Levered

Franklin Street Properties Corp. (FSP)

$1.83

+0.05 (+2.81%)

All numbers are in Millions, Currency in USD

Stock DCF: -0.78 | 1.83 | 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	268.87	269.07	245.85	209.36	165.62	147.28	130.97	116.47	103.57	92.10
Revenue (%)
Operating Cash Flow	80.20	81.91	68.45	36.36	15.23	33.78	30.04	26.71	23.76	21.12
Operating Cash Flow (%)
Capital Expenditure	-51.06	-70.75	-77.92	-64.83	-54.91	-41.56	-36.96	-32.87	-29.23	-25.99
Capital Expenditure (%)
Free Cash Flow	29.15	11.17	-9.47	-28.47	-39.68	-7.78	-6.92	-6.15	-5.47	-4.87

Weighted Average Cost Of Capital

Share price	$ 1.83
Beta	0.863
Diluted Shares Outstanding	103.34
Cost of Debt
Tax Rate	15.72
After-tax Cost of Debt	4.21%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.677
Total Debt	0.76
Total Equity	189.11
Total Capital	189.87
Debt Weighting	0.40
Equity Weighting	99.60
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	268.87	269.07	245.85	209.36	165.62	147.28	130.97	116.47	103.57	92.10
Operating Cash Flow	80.20	81.91	68.45	36.36	15.23	33.78	30.04	26.71	23.76	21.12
Capital Expenditure	-51.06	-70.75	-77.92	-64.83	-54.91	-41.56	-36.96	-32.87	-29.23	-25.99
Free Cash Flow	29.15	11.17	-9.47	-28.47	-39.68	-7.78	-6.92	-6.15	-5.47	-4.87
WACC
PV LFCF						-5	-4.13	-3.41	-2.82	-2.33
SUM PV LFCF										-25.57

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.66
Free cash flow (t + 1)	-4.96
Terminal Value	-87.69
Present Value of Terminal Value	-60.63

Intrinsic Value

Enterprise Value	-86.20
Net Debt	-5.87
Equity Value	-80.32
Shares Outstanding	103.34
Equity Value Per Share	-0.78