Discounted Cash Flow (DCF) Analysis Levered

RLJ Lodging Trust (RLJ)

$10.84

-0.19 (-1.72%)
All numbers are in Millions, Currency in USD
Stock DCF: 10.58 | 10.84 | overvalue

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 1,761.221,566.19473.09785.661,193.661,304.481,425.581,557.931,702.561,860.62
Revenue (%)
Operating Cash Flow 394.83397.32-168.7142.96256.52101.97111.44121.78133.09145.44
Operating Cash Flow (%)
Capital Expenditure -0.28-0.25-0.07-0.12-0.19-0.21-0.23-0.25-0.27-0.29
Capital Expenditure (%)
Free Cash Flow 394.56397.08-168.7842.84256.33101.76111.21121.53132.82145.15

Weighted Average Cost Of Capital

Share price $ 10.84
Beta 1.778
Diluted Shares Outstanding 164
Cost of Debt
Tax Rate 61.56
After-tax Cost of Debt 1.92%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.135
Total Debt -
Total Equity 1,777.74
Total Capital 1,777.74
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 1,761.221,566.19473.09785.661,193.661,304.481,425.581,557.931,702.561,860.62
Operating Cash Flow 394.83397.32-168.7142.96256.52101.97111.44121.78133.09145.44
Capital Expenditure -0.28-0.25-0.07-0.12-0.19-0.21-0.23-0.25-0.27-0.29
Free Cash Flow 394.56397.08-168.7842.84256.33101.76111.21121.53132.82145.15
WACC
PV LFCF 90.7588.4386.1883.9981.85
SUM PV LFCF 431.20

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.14
Free cash flow (t + 1) 148.05
Terminal Value 1,460.05
Present Value of Terminal Value 823.32

Intrinsic Value

Enterprise Value 1,254.51
Net Debt -481.32
Equity Value 1,735.83
Shares Outstanding 164
Equity Value Per Share 10.58