Discounted Cash Flow (DCF) Analysis Levered

The RMR Group Inc. (RMR)

$30.42

+0.58 (+1.94%)
All numbers are in Millions, Currency in USD
Stock DCF: 201.58 | 30.42 | undervalue

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 404.98713.37589.51607.24832.501,038.321,295.021,615.192,014.512,512.55
Revenue (%)
Operating Cash Flow 228.47198.2177.5071.79101.27251.97314.26391.96488.86609.72
Operating Cash Flow (%)
Capital Expenditure -0.65-0.70-0.60-1.14-1.12-1.42-1.77-2.21-2.75-3.43
Capital Expenditure (%)
Free Cash Flow 227.82197.5176.9070.65100.15250.55312.49389.75486.11606.29

Weighted Average Cost Of Capital

Share price $ 30.42
Beta 1.462
Diluted Shares Outstanding 31.35
Cost of Debt
Tax Rate 62.51
After-tax Cost of Debt 1.63%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.418
Total Debt 30.32
Total Equity 953.61
Total Capital 983.93
Debt Weighting 3.08
Equity Weighting 96.92
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 404.98713.37589.51607.24832.501,038.321,295.021,615.192,014.512,512.55
Operating Cash Flow 228.47198.2177.5071.79101.27251.97314.26391.96488.86609.72
Capital Expenditure -0.65-0.70-0.60-1.14-1.12-1.42-1.77-2.21-2.75-3.43
Free Cash Flow 227.82197.5176.9070.65100.15250.55312.49389.75486.11606.29
WACC
PV LFCF 227.46257.56291.63330.21373.90
SUM PV LFCF 1,480.76

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.15
Free cash flow (t + 1) 618.41
Terminal Value 7,587.87
Present Value of Terminal Value 4,679.48

Intrinsic Value

Enterprise Value 6,160.24
Net Debt -158.77
Equity Value 6,319
Shares Outstanding 31.35
Equity Value Per Share 201.58