Discounted Cash Flow (DCF) Analysis Levered

Hudson Pacific Properties, Inc. (HPP)

$4.73

+0.23 (+5.11%)

All numbers are in Millions, Currency in USD

Stock DCF: 2.36 | 4.73 | 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	728.42	818.18	804.96	896.84	1,026.22	1,119.99	1,222.32	1,334.01	1,455.89	1,588.92
Revenue (%)
Operating Cash Flow	214.63	288.01	302.03	314.86	369.50	388.19	423.66	462.37	504.62	550.72
Operating Cash Flow (%)
Capital Expenditure	-362.69	-20.50	-593.95	-125.23	-20.21	-318.11	-347.17	-378.90	-413.52	-451.30
Capital Expenditure (%)
Free Cash Flow	-148.06	267.51	-291.91	189.63	349.29	70.08	76.49	83.47	91.10	99.42

Weighted Average Cost Of Capital

Share price	$ 4.73
Beta	1.113
Diluted Shares Outstanding	143.73
Cost of Debt
Tax Rate	0.00
After-tax Cost of Debt	37.49%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.951
Total Debt	399.80
Total Equity	679.85
Total Capital	1,079.66
Debt Weighting	37.03
Equity Weighting	62.97
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	728.42	818.18	804.96	896.84	1,026.22	1,119.99	1,222.32	1,334.01	1,455.89	1,588.92
Operating Cash Flow	214.63	288.01	302.03	314.86	369.50	388.19	423.66	462.37	504.62	550.72
Capital Expenditure	-362.69	-20.50	-593.95	-125.23	-20.21	-318.11	-347.17	-378.90	-413.52	-451.30
Free Cash Flow	-148.06	267.51	-291.91	189.63	349.29	70.08	76.49	83.47	91.10	99.42
WACC
PV LFCF						58.64	53.54	48.89	44.64	40.77
SUM PV LFCF										246.48

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	19.52
Free cash flow (t + 1)	101.41
Terminal Value	578.84
Present Value of Terminal Value	237.33

Intrinsic Value

Enterprise Value	483.81
Net Debt	144.04
Equity Value	339.77
Shares Outstanding	143.73
Equity Value Per Share	2.36