Discounted Cash Flow (DCF) Analysis Levered

Paramount Group, Inc. (PGRE)

$4.05

-0.15 (-3.57%)

All numbers are in Millions, Currency in USD

Stock DCF: 22.31 | 4.05 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	758.96	769.18	714.24	726.79	740.38	736.36	732.37	728.39	724.44	720.51
Revenue (%)
Operating Cash Flow	156.52	285.44	237.27	244.31	246.64	232.51	231.25	230	228.75	227.51
Operating Cash Flow (%)
Capital Expenditure	197.32	48.47	115.35	117.37	119.57	118.92	118.28	117.63	117	116.36
Capital Expenditure (%)
Free Cash Flow	353.84	333.91	352.62	361.68	366.21	351.44	349.53	347.63	345.75	343.87

Weighted Average Cost Of Capital

Share price	$ 4.05
Beta	1.232
Diluted Shares Outstanding	218.71
Cost of Debt
Tax Rate	-46.01
After-tax Cost of Debt	5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.222
Total Debt	-
Total Equity	885.76
Total Capital	885.76
Debt Weighting	0.00
Equity Weighting	100.00
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	758.96	769.18	714.24	726.79	740.38	736.36	732.37	728.39	724.44	720.51
Operating Cash Flow	156.52	285.44	237.27	244.31	246.64	232.51	231.25	230	228.75	227.51
Capital Expenditure	197.32	48.47	115.35	117.37	119.57	118.92	118.28	117.63	117	116.36
Free Cash Flow	353.84	333.91	352.62	361.68	366.21	351.44	349.53	347.63	345.75	343.87
WACC
PV LFCF						321.77	293.01	266.82	242.97	221.25
SUM PV LFCF										1,345.81

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.22
Free cash flow (t + 1)	350.75
Terminal Value	4,858.03
Present Value of Terminal Value	3,125.71

Intrinsic Value

Enterprise Value	4,471.53
Net Debt	-408.90
Equity Value	4,880.43
Shares Outstanding	218.71
Equity Value Per Share	22.31