Discounted Cash Flow (DCF) Analysis Levered

RLJ Lodging Trust (RLJ)

$12.5

+0.03 (+0.24%)
All numbers are in Millions, Currency in USD
Stock DCF: -4.08 | 12.5 | overvalue

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 1,356.261,761.221,566.19473.09785.66815.25845.95877.81910.86945.16
Revenue (%)
Operating Cash Flow 260.59394.83397.32-168.7142.9660.0262.2864.6267.0569.58
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 260.38394.56397.07-168.7842.8459.8962.1464.4866.9169.43

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 1,356.261,761.221,566.19473.09785.66815.25845.95877.81910.86945.16
Operating Cash Flow 260.59394.83397.32-168.7142.9660.0262.2864.6267.0569.58
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 260.38394.56397.07-168.7842.8459.8962.1464.4866.9169.43
WACC
PV LFCF 55.8153.9652.1850.4648.79
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