Discounted Cash Flow (DCF) Analysis Levered

Plaza Retail REIT (PLZ-UN.TO)

$3.98

+0.06 (+1.53%)

All numbers are in Millions, Currency in USD

Stock DCF: 4.00 | 3.98 | 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	102.89	104.02	112.46	106.90	110.63	112.78	114.97	117.20	119.47	121.79
Revenue (%)
Operating Cash Flow	35.78	33.62	42.65	31.72	48.21	40.21	40.99	41.79	42.60	43.43
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	40.21	40.99	41.79	42.60	43.43

Weighted Average Cost Of Capital

Share price	$ 3.98
Beta	1.076
Diluted Shares Outstanding	101.81
Cost of Debt
Tax Rate	1.62
After-tax Cost of Debt	3.93%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.731
Total Debt	679.24
Total Equity	405.19
Total Capital	1,084.43
Debt Weighting	62.64
Equity Weighting	37.36
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	102.89	104.02	112.46	106.90	110.63	112.78	114.97	117.20	119.47	121.79
Operating Cash Flow	35.78	33.62	42.65	31.72	48.21	40.21	40.99	41.79	42.60	43.43
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	40.21	40.99	41.79	42.60	43.43
WACC
PV LFCF						38.04	36.68	35.37	34.10	32.88
SUM PV LFCF										177.06

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.72
Free cash flow (t + 1)	44.29
Terminal Value	1,190.70
Present Value of Terminal Value	901.61

Intrinsic Value

Enterprise Value	1,078.67
Net Debt	671.18
Equity Value	407.49
Shares Outstanding	101.81
Equity Value Per Share	4.00