Discounted Cash Flow (DCF) Analysis Levered

Highwoods Properties, Inc. (HIW)

$23.67

-0.15 (-0.63%)
All numbers are in Millions, Currency in USD
Stock DCF: 21.51 | 23.67 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 735.98736.90768.01828.93834860.87888.62917.25946.81977.32
Revenue (%)
Operating Cash Flow 365.80358.16414.56421.78386.96429.69443.53457.83472.58487.81
Operating Cash Flow (%)
Capital Expenditure -424.22-2.36-222.57-240.23-241.70-249.49-257.53-265.83-274.39-283.23
Capital Expenditure (%)
Free Cash Flow -58.43355.80191.99181.55145.26180.20186.01192198.19204.58

Weighted Average Cost Of Capital

Share price $ 23.67
Beta 1.215
Diluted Shares Outstanding 107.78
Cost of Debt
Tax Rate 3.37
After-tax Cost of Debt 4.14%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.020
Total Debt 3,213.21
Total Equity 2,551.27
Total Capital 5,764.48
Debt Weighting 55.74
Equity Weighting 44.26
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 735.98736.90768.01828.93834860.87888.62917.25946.81977.32
Operating Cash Flow 365.80358.16414.56421.78386.96429.69443.53457.83472.58487.81
Capital Expenditure -424.22-2.36-222.57-240.23-241.70-249.49-257.53-265.83-274.39-283.23
Free Cash Flow -58.43355.80191.99181.55145.26180.20186.01192198.19204.58
WACC
PV LFCF 168.82163.26157.88152.68147.65
SUM PV LFCF 790.29

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.74
Free cash flow (t + 1) 211.74
Terminal Value 6,535.11
Present Value of Terminal Value 4,716.47

Intrinsic Value

Enterprise Value 5,506.75
Net Debt 3,188.08
Equity Value 2,318.67
Shares Outstanding 107.78
Equity Value Per Share 21.51