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	1,356.26	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