Discounted Cash Flow (DCF) Analysis Levered

PS Business Parks, Inc. (PSB)

$187.44

+0.06 (+0.03%)

All numbers are in Millions, Currency in USD

Stock DCF: 234.40 | 187.44 | 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	402.18	413.52	429.85	415.62	438.70	448.59	458.69	469.03	479.60	490.40
Revenue (%)
Operating Cash Flow	271.61	276.15	290.60	276.97	302.24	302.76	309.58	316.55	323.69	330.98
Operating Cash Flow (%)
Capital Expenditure	-51.77	-39.85	-44.64	-52.47	-83.89	-57.99	-59.30	-60.64	-62	-63.40
Capital Expenditure (%)
Free Cash Flow	219.85	236.31	245.95	224.50	218.35	244.76	250.28	255.92	261.68	267.58

Weighted Average Cost Of Capital

Share price	$ 187.44
Beta	0.440
Diluted Shares Outstanding	27.64
Cost of Debt
Tax Rate	18.85
After-tax Cost of Debt	11.78%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.771
Total Debt	32
Total Equity	5,179.90
Total Capital	5,211.90
Debt Weighting	0.61
Equity Weighting	99.39
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	402.18	413.52	429.85	415.62	438.70	448.59	458.69	469.03	479.60	490.40
Operating Cash Flow	271.61	276.15	290.60	276.97	302.24	302.76	309.58	316.55	323.69	330.98
Capital Expenditure	-51.77	-39.85	-44.64	-52.47	-83.89	-57.99	-59.30	-60.64	-62	-63.40
Free Cash Flow	219.85	236.31	245.95	224.50	218.35	244.76	250.28	255.92	261.68	267.58
WACC
PV LFCF						231.32	223.55	216.03	208.77	201.75
SUM PV LFCF										1,081.42

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.81
Free cash flow (t + 1)	272.93
Terminal Value	7,163.51
Present Value of Terminal Value	5,401.23

Intrinsic Value

Enterprise Value	6,482.65
Net Debt	4.93
Equity Value	6,477.73
Shares Outstanding	27.64
Equity Value Per Share	234.40