Discounted Cash Flow (DCF) Analysis Levered

Office Properties Income Trust (OPI)

$14.26

+0.24 (+1.71%)
All numbers are in Millions, Currency in USD
Stock DCF: 240.26 | 14.26 | 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 316.53426.56678.40587.92576.48689.64825.02986.961,180.701,412.46
Revenue (%)
Operating Cash Flow 133.05144.92215.33233.63221.49256.42306.75366.96439525.17
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----256.42306.75366.96439525.17

Weighted Average Cost Of Capital

Share price $ 14.26
Beta 1.121
Diluted Shares Outstanding 48.20
Cost of Debt
Tax Rate -50.70
After-tax Cost of Debt 4.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.998
Total Debt 2,594.98
Total Equity 687.26
Total Capital 3,282.24
Debt Weighting 79.06
Equity Weighting 20.94
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 316.53426.56678.40587.92576.48689.64825.02986.961,180.701,412.46
Operating Cash Flow 133.05144.92215.33233.63221.49256.42306.75366.96439525.17
Capital Expenditure ----------
Free Cash Flow -----256.42306.75366.96439525.17
WACC
PV LFCF 243.49276.60314.21356.93405.46
SUM PV LFCF 1,596.68

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.31
Free cash flow (t + 1) 535.67
Terminal Value 16,183.48
Present Value of Terminal Value 12,494.65

Intrinsic Value

Enterprise Value 14,091.33
Net Debt 2,511.96
Equity Value 11,579.37
Shares Outstanding 48.20
Equity Value Per Share 240.26