Discounted Cash Flow (DCF) Analysis Levered

Summit Hotel Properties, Inc. (INN)

$7.77

-0.20 (-2.51%)
All numbers are in Millions, Currency in USD
Stock DCF: 0.21 | 7.77 | 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 515.38567.27549.35234.46361.93365.50369.12372.76376.45380.17
Revenue (%)
Operating Cash Flow 146.92161.65148.48-42.0566.0561.6662.2762.8863.5064.13
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----61.6662.2762.8863.5064.13

Weighted Average Cost Of Capital

Share price $ 7.77
Beta 1.967
Diluted Shares Outstanding 104.14
Cost of Debt
Tax Rate 2.29
After-tax Cost of Debt 3.90%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.795
Total Debt 1,087.03
Total Equity 809.18
Total Capital 1,896.20
Debt Weighting 57.33
Equity Weighting 42.67
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 515.38567.27549.35234.46361.93365.50369.12372.76376.45380.17
Operating Cash Flow 146.92161.65148.48-42.0566.0561.6662.2762.8863.5064.13
Capital Expenditure ----------
Free Cash Flow -----61.6662.2762.8863.5064.13
WACC
PV LFCF 39.5137.0534.7432.5730.54
SUM PV LFCF 252.73

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.70
Free cash flow (t + 1) 65.41
Terminal Value 1,147.63
Present Value of Terminal Value 791.99

Intrinsic Value

Enterprise Value 1,044.72
Net Debt 1,022.54
Equity Value 22.18
Shares Outstanding 104.14
Equity Value Per Share 0.21