Discounted Cash Flow (DCF) Analysis Levered

Mid-America Apartment Communities, ... (MAA)

$161.64

-1.63 (-1.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 72.20 | 161.64 | 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 1,528.991,571.351,641.021,677.981,778.081,846.641,917.841,991.782,068.572,148.33
Revenue (%)
Operating Cash Flow 658.51734.29781.42823.95894.97874.77908.49943.52979.901,017.68
Operating Cash Flow (%)
Capital Expenditure -343.89-254.71-303.10-426.94-279.64-363.20-377.21-391.75-406.85-422.54
Capital Expenditure (%)
Free Cash Flow 314.62479.58478.32397.01615.33511.56531.29551.77573.04595.14

Weighted Average Cost Of Capital

Share price $ 161.64
Beta 0.731
Diluted Shares Outstanding 114.50
Cost of Debt
Tax Rate 5.21
After-tax Cost of Debt 3.29%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.017
Total Debt 4,516.69
Total Equity 18,507.78
Total Capital 23,024.47
Debt Weighting 19.62
Equity Weighting 80.38
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 1,528.991,571.351,641.021,677.981,778.081,846.641,917.841,991.782,068.572,148.33
Operating Cash Flow 658.51734.29781.42823.95894.97874.77908.49943.52979.901,017.68
Capital Expenditure -343.89-254.71-303.10-426.94-279.64-363.20-377.21-391.75-406.85-422.54
Free Cash Flow 314.62479.58478.32397.01615.33511.56531.29551.77573.04595.14
WACC
PV LFCF 481.29470.27459.49448.97438.69
SUM PV LFCF 2,298.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.29
Free cash flow (t + 1) 607.04
Terminal Value 14,150.12
Present Value of Terminal Value 10,430.33

Intrinsic Value

Enterprise Value 12,729.03
Net Debt 4,462.39
Equity Value 8,266.65
Shares Outstanding 114.50
Equity Value Per Share 72.20