Discounted Cash Flow (DCF) Analysis Levered

MFA Financial, Inc. (MFA-PB)

$18.8152

+0.12 (+0.62%)

All numbers are in Millions, Currency in USD

Stock DCF: -25.55 | 18.8152 | 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	347.88	430.76	-555.87	337.22	-83.91	19.04	-4.32	0.98	-0.22	0.05
Revenue (%)
Operating Cash Flow	147.88	215.77	38.40	120.29	366.08	-11.99	2.72	-0.62	0.14	-0.03
Operating Cash Flow (%)
Capital Expenditure	-1.13	-1.88	-4.86	-12.05	-0.30	-0.12	0.03	-0.01	0	-0
Capital Expenditure (%)
Free Cash Flow	146.75	213.90	33.53	108.24	365.78	-12.11	2.75	-0.62	0.14	-0.03

Weighted Average Cost Of Capital

Share price	$ 18.8,152
Beta	2.004
Diluted Shares Outstanding	129.40
Cost of Debt
Tax Rate	0.00
After-tax Cost of Debt	7.13%
Risk-Free Rate
Market Risk Premium
Cost of Equity	13.268
Total Debt	3,630.75
Total Equity	2,434.61
Total Capital	6,065.36
Debt Weighting	59.86
Equity Weighting	40.14
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	347.88	430.76	-555.87	337.22	-83.91	19.04	-4.32	0.98	-0.22	0.05
Operating Cash Flow	147.88	215.77	38.40	120.29	366.08	-11.99	2.72	-0.62	0.14	-0.03
Capital Expenditure	-1.13	-1.88	-4.86	-12.05	-0.30	-0.12	0.03	-0.01	0	-0
Free Cash Flow	146.75	213.90	33.53	108.24	365.78	-12.11	2.75	-0.62	0.14	-0.03
WACC
PV LFCF						-11.05	2.29	-0.47	0.10	-0.02
SUM PV LFCF										-9.16

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.59
Free cash flow (t + 1)	-0.03
Terminal Value	-0.43
Present Value of Terminal Value	-0.27

Intrinsic Value

Enterprise Value	-9.43
Net Debt	3,296.57
Equity Value	-3,306
Shares Outstanding	129.40
Equity Value Per Share	-25.55