Discounted Cash Flow (DCF) Analysis Levered

Corporate Office Properties Trust (OFC)

$27.4

+0.20 (+0.74%)

All numbers are in Millions, Currency in USD

Stock DCF: 37.63 | 27.4 | undervalue

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	612.82	578.11	641.23	609.37	664.45	679.93	695.78	712	728.60	745.58
Revenue (%)
Operating Cash Flow	230.65	180.48	228.56	238.42	249.15	246.31	252.05	257.92	263.93	270.09
Operating Cash Flow (%)
Capital Expenditure	-22.88	-24.22	-24.66	-32.76	-28.48	-29.14	-29.82	-30.52	-31.23	-31.96
Capital Expenditure (%)
Free Cash Flow	207.77	156.26	203.90	205.67	220.67	217.16	222.22	227.40	232.71	238.13

Weighted Average Cost Of Capital

Share price	$ 27.4
Beta	0.966
Diluted Shares Outstanding	112.50
Cost of Debt
Tax Rate	2.33
After-tax Cost of Debt	2.77%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.303
Total Debt	2,301.65
Total Equity	3,082.45
Total Capital	5,384.09
Debt Weighting	42.75
Equity Weighting	57.25
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	612.82	578.11	641.23	609.37	664.45	679.93	695.78	712	728.60	745.58
Operating Cash Flow	230.65	180.48	228.56	238.42	249.15	246.31	252.05	257.92	263.93	270.09
Capital Expenditure	-22.88	-24.22	-24.66	-32.76	-28.48	-29.14	-29.82	-30.52	-31.23	-31.96
Free Cash Flow	207.77	156.26	203.90	205.67	220.67	217.16	222.22	227.40	232.71	238.13
WACC
PV LFCF						206.10	200.15	194.38	188.77	183.33
SUM PV LFCF										972.73

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.37
Free cash flow (t + 1)	242.89
Terminal Value	7,207.49
Present Value of Terminal Value	5,548.80

Intrinsic Value

Enterprise Value	6,521.52
Net Debt	2,288.38
Equity Value	4,233.14
Shares Outstanding	112.50
Equity Value Per Share	37.63