Discounted Cash Flow (DCF) Analysis Levered

Highwoods Properties, Inc. (HIW)

$20.52

+0.31 (+1.53%)

All numbers are in Millions, Currency in USD

Stock DCF: 56.77 | 20.52 | undervalue

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	720.03	735.98	736.90	768.01	828.93	858.96	890.09	922.34	955.76	990.39
Revenue (%)
Operating Cash Flow	358.63	365.80	358.16	414.56	421.78	434.59	450.34	466.65	483.56	501.08
Operating Cash Flow (%)
Capital Expenditure	-50.65	-424.22	-2.36	-166.39	-179.59	-186.10	-192.84	-199.83	-207.07	-214.57
Capital Expenditure (%)
Free Cash Flow	307.98	-58.43	355.80	248.17	242.19	248.49	257.50	266.83	276.50	286.51

Weighted Average Cost Of Capital

Share price	$ 20.52
Beta	1.171
Diluted Shares Outstanding	107.57
Cost of Debt
Tax Rate	64.28
After-tax Cost of Debt	1.18%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.138
Total Debt	3,197.22
Total Equity	2,207.27
Total Capital	5,404.49
Debt Weighting	59.16
Equity Weighting	40.84
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	720.03	735.98	736.90	768.01	828.93	858.96	890.09	922.34	955.76	990.39
Operating Cash Flow	358.63	365.80	358.16	414.56	421.78	434.59	450.34	466.65	483.56	501.08
Capital Expenditure	-50.65	-424.22	-2.36	-166.39	-179.59	-186.10	-192.84	-199.83	-207.07	-214.57
Free Cash Flow	307.98	-58.43	355.80	248.17	242.19	248.49	257.50	266.83	276.50	286.51
WACC
PV LFCF						237.02	234.27	231.55	228.87	226.21
SUM PV LFCF										1,157.92

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.84
Free cash flow (t + 1)	292.24
Terminal Value	10,290.32
Present Value of Terminal Value	8,124.44

Intrinsic Value

Enterprise Value	9,282.37
Net Debt	3,175.86
Equity Value	6,106.51
Shares Outstanding	107.57
Equity Value Per Share	56.77