Discounted Cash Flow (DCF) Analysis Levered

H&R Real Estate Investment Trust (HR-UN.TO)

$12.39

-0.11 (-0.88%)
All numbers are in Millions, Currency in USD
Stock DCF: 2.77 | 12.39 | 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 1,168.451,176.561,149.451,098.681,065.381,041.251,017.67994.63972.10950.09
Revenue (%)
Operating Cash Flow 479.24462.12418.04426.93452.11412.24402.91393.78384.87376.15
Operating Cash Flow (%)
Capital Expenditure -51.85-57.83-64.23-52.98-47.09-50.36-49.22-48.10-47.02-45.95
Capital Expenditure (%)
Free Cash Flow 427.39404.30353.80373.95405.02361.88353.69345.68337.85330.20

Weighted Average Cost Of Capital

Share price $ 12.39
Beta 1.858
Diluted Shares Outstanding 286.80
Cost of Debt
Tax Rate 0.92
After-tax Cost of Debt 5.70%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.275
Total Debt 3,924.03
Total Equity 3,553.50
Total Capital 7,477.53
Debt Weighting 52.48
Equity Weighting 47.52
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 1,168.451,176.561,149.451,098.681,065.381,041.251,017.67994.63972.10950.09
Operating Cash Flow 479.24462.12418.04426.93452.11412.24402.91393.78384.87376.15
Capital Expenditure -51.85-57.83-64.23-52.98-47.09-50.36-49.22-48.10-47.02-45.95
Free Cash Flow 427.39404.30353.80373.95405.02361.88353.69345.68337.85330.20
WACC
PV LFCF 332.55298.68268.25240.93216.39
SUM PV LFCF 1,356.81

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.82
Free cash flow (t + 1) 336.80
Terminal Value 4,938.48
Present Value of Terminal Value 3,236.31

Intrinsic Value

Enterprise Value 4,593.11
Net Debt 3,799.89
Equity Value 793.23
Shares Outstanding 286.80
Equity Value Per Share 2.77