Discounted Cash Flow (DCF) Analysis Levered
RLJ Lodging Trust (RLJ)
$12.5
+0.03 (+0.24%)
All numbers are in Millions, Currency in USD
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 | 1,356.26 | 1,761.22 | 1,566.19 | 473.09 | 785.66 | 815.25 | 845.95 | 877.81 | 910.86 | 945.16 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 260.59 | 394.83 | 397.32 | -168.71 | 42.96 | 60.02 | 62.28 | 64.62 | 67.05 | 69.58 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -0.22 | -0.28 | -0.25 | -0.08 | -0.13 | -0.13 | -0.14 | -0.14 | -0.15 | -0.15 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 260.38 | 394.56 | 397.07 | -168.78 | 42.84 | 59.89 | 62.14 | 64.48 | 66.91 | 69.43 |
Weighted Average Cost Of Capital
Share price | $ 12.5 |
---|---|
Beta | 1.773 |
Diluted Shares Outstanding | 164.07 |
Cost of Debt | |
Tax Rate | 1.53 |
After-tax Cost of Debt | 4.14% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 11.229 |
Total Debt | 2,532.47 |
Total Equity | 2,050.85 |
Total Capital | 4,583.32 |
Debt Weighting | 55.25 |
Equity Weighting | 44.75 |
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 | 1,356.26 | 1,761.22 | 1,566.19 | 473.09 | 785.66 | 815.25 | 845.95 | 877.81 | 910.86 | 945.16 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 260.59 | 394.83 | 397.32 | -168.71 | 42.96 | 60.02 | 62.28 | 64.62 | 67.05 | 69.58 |
Capital Expenditure | -0.22 | -0.28 | -0.25 | -0.08 | -0.13 | -0.13 | -0.14 | -0.14 | -0.15 | -0.15 |
Free Cash Flow | 260.38 | 394.56 | 397.07 | -168.78 | 42.84 | 59.89 | 62.14 | 64.48 | 66.91 | 69.43 |
WACC | ||||||||||
PV LFCF | 55.81 | 53.96 | 52.18 | 50.46 | 48.79 | |||||
SUM PV LFCF | 261.20 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.31 |
Free cash flow (t + 1) | 70.82 |
Terminal Value | 1,333.66 |
Present Value of Terminal Value | 937.22 |
Intrinsic Value
Enterprise Value | 1,198.42 |
---|---|
Net Debt | 1,867.13 |
Equity Value | -668.71 |
Shares Outstanding | 164.07 |
Equity Value Per Share | -4.08 |