Discounted Cash Flow (DCF) Analysis Levered

MFA Financial, Inc. (MFA)

$7.71

-0.27 (-3.38%)
All numbers are in Millions, Currency in USD
Stock DCF: -23.07 | 7.71 | 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 373.06347.88430.76-498.83337.2228.392.390.200.020
Revenue (%)
Operating Cash Flow 176.07147.88215.7738.40120.299.530.800.070.010
Operating Cash Flow (%)
Capital Expenditure -0.87-1.13-1.88-4.86-12.05-0.20-0.02-0-0-0
Capital Expenditure (%)
Free Cash Flow 175.20146.75213.9033.53108.249.320.780.070.010

Weighted Average Cost Of Capital

Share price $ 7.71
Beta 1.797
Diluted Shares Outstanding 113.01
Cost of Debt
Tax Rate 0.00
After-tax Cost of Debt 4.12%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.306
Total Debt 2,921.92
Total Equity 871.29
Total Capital 3,793.21
Debt Weighting 77.03
Equity Weighting 22.97
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 373.06347.88430.76-498.83337.2228.392.390.200.020
Operating Cash Flow 176.07147.88215.7738.40120.299.530.800.070.010
Capital Expenditure -0.87-1.13-1.88-4.86-12.05-0.20-0.02-0-0-0
Free Cash Flow 175.20146.75213.9033.53108.249.320.780.070.010
WACC
PV LFCF 8.790.700.0600
SUM PV LFCF 9.55

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.00
Free cash flow (t + 1) 0
Terminal Value 0.01
Present Value of Terminal Value 0.01

Intrinsic Value

Enterprise Value 9.56
Net Debt 2,617.22
Equity Value -2,607.66
Shares Outstanding 113.01
Equity Value Per Share -23.07