Discounted Cash Flow (DCF) Analysis Levered

American Hotel Income Properties RE... (HOT-UN.TO)

$2.8

+0.05 (+1.82%)
All numbers are in Millions, Currency in USD
Stock DCF: -5.83 | 2.8 | overvalue

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 303.71338.56269.55174.86241.31237.67234.08230.55227.07223.64
Revenue (%)
Operating Cash Flow 63.6861.3252.593.5517.9532.3531.8631.3830.9130.44
Operating Cash Flow (%)
Capital Expenditure -23.52-22.41-29.53-8.95-6.21-15.69-15.45-15.22-14.99-14.77
Capital Expenditure (%)
Free Cash Flow 40.1638.9023.06-5.3911.7516.6616.4116.1615.9215.68

Weighted Average Cost Of Capital

Share price $ 2.8
Beta 2.610
Diluted Shares Outstanding 78.50
Cost of Debt
Tax Rate -45.49
After-tax Cost of Debt 4.97%
Risk-Free Rate
Market Risk Premium
Cost of Equity 16.124
Total Debt 738.85
Total Equity 219.81
Total Capital 958.66
Debt Weighting 77.07
Equity Weighting 22.93
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 303.71338.56269.55174.86241.31237.67234.08230.55227.07223.64
Operating Cash Flow 63.6861.3252.593.5517.9532.3531.8631.3830.9130.44
Capital Expenditure -23.52-22.41-29.53-8.95-6.21-15.69-15.45-15.22-14.99-14.77
Free Cash Flow 40.1638.9023.06-5.3911.7516.6616.4116.1615.9215.68
WACC
PV LFCF 15.4914.191311.9110.91
SUM PV LFCF 65.50

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.53
Free cash flow (t + 1) 15.99
Terminal Value 289.17
Present Value of Terminal Value 201.14

Intrinsic Value

Enterprise Value 266.64
Net Debt 724.15
Equity Value -457.51
Shares Outstanding 78.50
Equity Value Per Share -5.83