Discounted Cash Flow (DCF) Analysis Levered

The Macerich Company (MAC)

$12.13

+0.66 (+5.75%)

All numbers are in Millions, Currency in USD

Stock DCF: -16.27 | 12.13 | 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	960.35	927.46	786.03	847.44	859.16	838.81	818.93	799.53	780.58	762.09
Revenue (%)
Operating Cash Flow	344.31	355.16	124.84	286.37	337.51	273.63	267.14	260.81	254.63	248.60
Operating Cash Flow (%)
Capital Expenditure	-237.23	-229.11	-194.17	-209.34	-212.24	-207.21	-202.30	-197.50	-192.82	-188.25
Capital Expenditure (%)
Free Cash Flow	107.08	126.05	-69.33	77.03	125.27	66.42	64.84	63.31	61.81	60.34

Weighted Average Cost Of Capital

Share price	$ 12.13
Beta	2.183
Diluted Shares Outstanding	215.03
Cost of Debt
Tax Rate	-1.10
After-tax Cost of Debt	4.82%
Risk-Free Rate
Market Risk Premium
Cost of Equity	14.460
Total Debt	4,498.62
Total Equity	2,608.33
Total Capital	7,106.95
Debt Weighting	63.30
Equity Weighting	36.70
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	960.35	927.46	786.03	847.44	859.16	838.81	818.93	799.53	780.58	762.09
Operating Cash Flow	344.31	355.16	124.84	286.37	337.51	273.63	267.14	260.81	254.63	248.60
Capital Expenditure	-237.23	-229.11	-194.17	-209.34	-212.24	-207.21	-202.30	-197.50	-192.82	-188.25
Free Cash Flow	107.08	126.05	-69.33	77.03	125.27	66.42	64.84	63.31	61.81	60.34
WACC
PV LFCF						61.29	55.23	49.76	44.83	40.39
SUM PV LFCF										251.50

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.36
Free cash flow (t + 1)	61.55
Terminal Value	967.78
Present Value of Terminal Value	647.79

Intrinsic Value

Enterprise Value	899.28
Net Debt	4,398.30
Equity Value	-3,499.02
Shares Outstanding	215.03
Equity Value Per Share	-16.27