Discounted Cash Flow (DCF) Analysis Levered

Office Properties Income Trust (OPI)

$3.04

-0.14 (-4.40%)
All numbers are in Millions, Currency in USD
Stock DCF: 48.95 | 3.04 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 678.40587.92576.48554.27533.55503.04474.28447.15421.58397.48
Revenue (%)
Operating Cash Flow 215.33233.63221.49192.61141.73172.25162.40153.12144.36136.11
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----172.25162.40153.12144.36136.11

Weighted Average Cost Of Capital

Share price $ 3.04
Beta 1.252
Diluted Shares Outstanding 48.39
Cost of Debt
Tax Rate -48.80
After-tax Cost of Debt 4.29%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.194
Total Debt 2,584.27
Total Equity 147.10
Total Capital 2,731.38
Debt Weighting 94.61
Equity Weighting 5.39
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 678.40587.92576.48554.27533.55503.04474.28447.15421.58397.48
Operating Cash Flow 215.33233.63221.49192.61141.73172.25162.40153.12144.36136.11
Capital Expenditure ----------
Free Cash Flow -----172.25162.40153.12144.36136.11
WACC
PV LFCF 164.68148.43133.79120.59108.70
SUM PV LFCF 676.20

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.60
Free cash flow (t + 1) 138.83
Terminal Value 5,339.55
Present Value of Terminal Value 4,264.28

Intrinsic Value

Enterprise Value 4,940.48
Net Debt 2,571.96
Equity Value 2,368.52
Shares Outstanding 48.39
Equity Value Per Share 48.95