Discounted Cash Flow (DCF) Analysis Levered

The Necessity Retail REIT, Inc. (RTL)

$6.67

-0.16 (-2.34%)
All numbers are in Millions, Currency in USD
Stock DCF: 15.79 | 6.67 | undervalue

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 269.82291.21299.74305.22335.16354373.91394.93417.14440.59
Revenue (%)
Operating Cash Flow 92.4695.04105.5792.72145.23124.49131.49138.88146.69154.94
Operating Cash Flow (%)
Capital Expenditure -8.92-10.43-13.65-9.20-13.41-13.06-13.80-14.58-15.40-16.26
Capital Expenditure (%)
Free Cash Flow 83.5584.6191.9283.52131.82111.42117.69124.31131.30138.68

Weighted Average Cost Of Capital

Share price $ 6.67
Beta 1.386
Diluted Shares Outstanding 108.40
Cost of Debt
Tax Rate 0.02
After-tax Cost of Debt 3.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.081
Total Debt 2,053.21
Total Equity 723.06
Total Capital 2,776.27
Debt Weighting 73.96
Equity Weighting 26.04
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 269.82291.21299.74305.22335.16354373.91394.93417.14440.59
Operating Cash Flow 92.4695.04105.5792.72145.23124.49131.49138.88146.69154.94
Capital Expenditure -8.92-10.43-13.65-9.20-13.41-13.06-13.80-14.58-15.40-16.26
Free Cash Flow 83.5584.6191.9283.52131.82111.42117.69124.31131.30138.68
WACC
PV LFCF 105.55105.60105.65105.70105.76
SUM PV LFCF 528.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.57
Free cash flow (t + 1) 141.45
Terminal Value 3,962.26
Present Value of Terminal Value 3,021.62

Intrinsic Value

Enterprise Value 3,549.87
Net Debt 1,838.36
Equity Value 1,711.51
Shares Outstanding 108.40
Equity Value Per Share 15.79