Discounted Cash Flow (DCF) Analysis Levered

MFA Financial, Inc. (MFA-PB)

$17.6049

-0.19 (-1.04%)

All numbers are in Millions, Currency in USD

Stock DCF: 2.51 | 17.6049 | overvalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	347.88	430.76	-555.87	337.22	-74.05	16.26	-3.57	0.78	-0.17	0.04
Revenue (%)
Operating Cash Flow	147.88	215.77	38.40	120.29	366.08	-12.13	2.66	-0.59	0.13	-0.03
Operating Cash Flow (%)
Capital Expenditure	-1.13	-1.88	-4.86	-12.05	0.64	-0.14	0.03	-0.01	0	-0
Capital Expenditure (%)
Free Cash Flow	146.75	213.90	33.53	108.24	366.72	-12.27	2.69	-0.59	0.13	-0.03

Weighted Average Cost Of Capital

Share price	$ 17.6,049
Beta	1.995
Diluted Shares Outstanding	129.40
Cost of Debt
Tax Rate	0.00
After-tax Cost of Debt	5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.907
Total Debt	-
Total Equity	2,278
Total Capital	2,278
Debt Weighting	0.00
Equity Weighting	100.00
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	347.88	430.76	-555.87	337.22	-74.05	16.26	-3.57	0.78	-0.17	0.04
Operating Cash Flow	147.88	215.77	38.40	120.29	366.08	-12.13	2.66	-0.59	0.13	-0.03
Capital Expenditure	-1.13	-1.88	-4.86	-12.05	0.64	-0.14	0.03	-0.01	0	-0
Free Cash Flow	146.75	213.90	33.53	108.24	366.72	-12.27	2.69	-0.59	0.13	-0.03
WACC
PV LFCF					366.72	-10.87	2.11	-0.41	0.08	-0.02
SUM PV LFCF										-9.10

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	12.91
Free cash flow (t + 1)	-0.03
Terminal Value	-0.27
Present Value of Terminal Value	-0.15

Intrinsic Value

Enterprise Value	-9.25
Net Debt	-334.18
Equity Value	324.94
Shares Outstanding	129.40
Equity Value Per Share	2.51