Discounted Cash Flow (DCF) Analysis Levered

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

$1.59

-0.08 (-4.79%)

All numbers are in Millions, Currency in USD

Stock DCF: -4.66 | 1.59 | 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	338.56	269.55	174.86	241.31	281.37	280.73	280.09	279.45	278.82	278.18
Revenue (%)
Operating Cash Flow	61.31	52.59	3.55	17.95	44.91	35.40	35.32	35.24	35.16	35.08
Operating Cash Flow (%)
Capital Expenditure	-22.41	-29.53	-8.95	-6.21	-28.25	-19.82	-19.78	-19.73	-19.69	-19.64
Capital Expenditure (%)
Free Cash Flow	38.90	23.06	-5.39	11.75	16.66	15.58	15.54	15.51	15.47	15.44

Weighted Average Cost Of Capital

Share price	$ 1.59
Beta	2.347
Diluted Shares Outstanding	78.50
Cost of Debt
Tax Rate	1.39
After-tax Cost of Debt	4.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity	15.881
Total Debt	688.44
Total Equity	124.82
Total Capital	813.26
Debt Weighting	84.65
Equity Weighting	15.35
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	338.56	269.55	174.86	241.31	281.37	280.73	280.09	279.45	278.82	278.18
Operating Cash Flow	61.31	52.59	3.55	17.95	44.91	35.40	35.32	35.24	35.16	35.08
Capital Expenditure	-22.41	-29.53	-8.95	-6.21	-28.25	-19.82	-19.78	-19.73	-19.69	-19.64
Free Cash Flow	38.90	23.06	-5.39	11.75	16.66	15.58	15.54	15.51	15.47	15.44
WACC
PV LFCF						10.59	9.91	9.27	8.67	8.11
SUM PV LFCF										64.21

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.65
Free cash flow (t + 1)	15.75
Terminal Value	338.66
Present Value of Terminal Value	245.45

Intrinsic Value

Enterprise Value	309.66
Net Debt	675.49
Equity Value	-365.83
Shares Outstanding	78.50
Equity Value Per Share	-4.66