Discounted Cash Flow (DCF) Analysis Levered

Retail Opportunity Investments Corp... (ROIC)

$13.89

-0.58 (-4.01%)
All numbers are in Millions, Currency in USD
Stock DCF: 7.12 | 13.89 | 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 273.26295.80295.04284.11284.10287.14290.22293.32296.47299.64
Revenue (%)
Operating Cash Flow 128.29130.92132.04106.66136.33127.20128.56129.94131.33132.74
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----127.20128.56129.94131.33132.74

Weighted Average Cost Of Capital

Share price $ 13.89
Beta 1.371
Diluted Shares Outstanding 124.09
Cost of Debt
Tax Rate 6.72
After-tax Cost of Debt 4.04%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.348
Total Debt 1,329.47
Total Equity 1,723.59
Total Capital 3,053.06
Debt Weighting 43.55
Equity Weighting 56.45
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 273.26295.80295.04284.11284.10287.14290.22293.32296.47299.64
Operating Cash Flow 128.29130.92132.04106.66136.33127.20128.56129.94131.33132.74
Capital Expenditure ----------
Free Cash Flow -----127.20128.56129.94131.33132.74
WACC
PV LFCF 118.21111.04104.3097.9792.03
SUM PV LFCF 523.56

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.60
Free cash flow (t + 1) 135.39
Terminal Value 2,417.68
Present Value of Terminal Value 1,676.24

Intrinsic Value

Enterprise Value 2,199.80
Net Debt 1,316.26
Equity Value 883.55
Shares Outstanding 124.09
Equity Value Per Share 7.12