Discounted Cash Flow (DCF) Analysis Levered

Optibase Ltd. (OBAS)

$12.59

0.00 (0.00%)

All numbers are in Millions, Currency in USD

Stock DCF: -330.79 | 12.59 | overvalue

Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	16.34	16.59	16.61	16.14	14.87	14.54	14.21	13.89	13.58	13.27
Revenue (%)
Operating Cash Flow	7.26	7.90	6.87	7.40	5.12	6.21	6.07	5.93	5.80	5.67
Operating Cash Flow (%)
Capital Expenditure	-2.45	-2.49	-2.49	-2.42	-2.23	-2.18	-2.13	-2.08	-2.04	-1.99
Capital Expenditure (%)
Free Cash Flow	4.81	5.41	4.38	4.98	2.89	4.03	3.94	3.85	3.77	3.68

Weighted Average Cost Of Capital

Share price	$ 12.59
Beta	-0.048
Diluted Shares Outstanding	5.19
Cost of Debt
Tax Rate	52.90
After-tax Cost of Debt	0.92%
Risk-Free Rate
Market Risk Premium
Cost of Equity	3.470
Total Debt	126.74
Total Equity	65.29
Total Capital	192.03
Debt Weighting	66.00
Equity Weighting	34.00
Wacc

Build Up Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	16.34	16.59	16.61	16.14	14.87	14.54	14.21	13.89	13.58	13.27
Operating Cash Flow	7.26	7.90	6.87	7.40	5.12	6.21	6.07	5.93	5.80	5.67
Capital Expenditure	-2.45	-2.49	-2.49	-2.42	-2.23	-2.18	-2.13	-2.08	-2.04	-1.99
Free Cash Flow	4.81	5.41	4.38	4.98	2.89	4.03	3.94	3.85	3.77	3.68
WACC
PV LFCF						3.96	3.80	3.65	3.51	3.37
SUM PV LFCF										18.29

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	1.79
Free cash flow (t + 1)	3.75
Terminal Value	-1,787.57
Present Value of Terminal Value	-1,635.83

Intrinsic Value

Enterprise Value	-1,617.54
Net Debt	97.92
Equity Value	-1,715.45
Shares Outstanding	5.19
Equity Value Per Share	-330.79