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	1,761.22	1,566.19	473.09	785.66	1,193.66	1,304.48	1,425.58	1,557.93	1,702.56	1,860.62
Revenue (%)
Operating Cash Flow	394.83	397.32	-168.71	42.96	256.52	101.97	111.44	121.78	133.09	145.44
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	394.56	397.08	-168.78	42.84	256.33	101.76	111.21	121.53	132.82	145.15

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	1,761.22	1,566.19	473.09	785.66	1,193.66	1,304.48	1,425.58	1,557.93	1,702.56	1,860.62
Operating Cash Flow	394.83	397.32	-168.71	42.96	256.52	101.97	111.44	121.78	133.09	145.44
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	394.56	397.08	-168.78	42.84	256.33	101.76	111.21	121.53	132.82	145.15
WACC
PV LFCF						90.75	88.43	86.18	83.99	81.85
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