Discounted Cash Flow (DCF) Analysis Levered

Healthcare Realty Trust Incorporate... (HR)

$27.54

-0.29 (-1.04%)

All numbers are in Millions, Currency in USD

Stock DCF: 47.14 | 27.54 | undervalue

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	424.50	450.39	470.30	499.63	534.82	566.64	600.35	636.07	673.91	714.01
Revenue (%)
Operating Cash Flow	179.77	208.35	213.14	470.09	232.63	307.70	326.01	345.40	365.95	387.73
Operating Cash Flow (%)
Capital Expenditure	-80.61	-70.81	-64.67	-93.96	-100.69	-97.57	-103.38	-109.53	-116.04	-122.95
Capital Expenditure (%)
Free Cash Flow	99.15	137.55	148.47	376.13	131.94	210.13	222.63	235.88	249.91	264.78

Weighted Average Cost Of Capital

Share price	$ 27.54
Beta	0.597
Diluted Shares Outstanding	143.82
Cost of Debt
Tax Rate	0.00
After-tax Cost of Debt	2.62%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.838
Total Debt	1,920.01
Total Equity	3,960.74
Total Capital	5,880.75
Debt Weighting	32.65
Equity Weighting	67.35
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	424.50	450.39	470.30	499.63	534.82	566.64	600.35	636.07	673.91	714.01
Operating Cash Flow	179.77	208.35	213.14	470.09	232.63	307.70	326.01	345.40	365.95	387.73
Capital Expenditure	-80.61	-70.81	-64.67	-93.96	-100.69	-97.57	-103.38	-109.53	-116.04	-122.95
Free Cash Flow	99.15	137.55	148.47	376.13	131.94	210.13	222.63	235.88	249.91	264.78
WACC
PV LFCF						200.52	202.74	204.99	207.26	209.55
SUM PV LFCF										1,025.06

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.79
Free cash flow (t + 1)	270.08
Terminal Value	9,680.13
Present Value of Terminal Value	7,660.94

Intrinsic Value

Enterprise Value	8,685.99
Net Debt	1,906.84
Equity Value	6,779.16
Shares Outstanding	143.82
Equity Value Per Share	47.14