Discounted Cash Flow (DCF) Analysis Levered
Redwood Trust, Inc. (RWT)
$6.4
-0.03 (-0.47%)
All numbers are in Millions, Currency in USD
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 | 213.03 | 304.47 | -352 | 525.65 | -163 | 62.36 | -23.86 | 9.13 | -3.49 | 1.34 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | -1,611.73 | -1,165.58 | -505.47 | -5,694.56 | -139.14 | -248.66 | 95.13 | -36.39 | 13.92 | -5.33 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -25.49 | -36.43 | 42.12 | -62.89 | 19.50 | -7.46 | 2.85 | -1.09 | 0.42 | -0.16 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -1,637.22 | -1,202.01 | -463.35 | -5,757.46 | -119.64 | -256.12 | 97.98 | -37.48 | 14.34 | -5.49 |
Weighted Average Cost Of Capital
| Share price | $ 6.4 |
|---|---|
| Beta | 1.411 |
| Diluted Shares Outstanding | 117.23 |
| Cost of Debt | |
| Tax Rate | -13.89 |
| After-tax Cost of Debt | 14.67% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.375 |
| Total Debt | 3,763 |
| Total Equity | 750.26 |
| Total Capital | 4,513.26 |
| Debt Weighting | 83.38 |
| Equity Weighting | 16.62 |
| 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 | 213.03 | 304.47 | -352 | 525.65 | -163 | 62.36 | -23.86 | 9.13 | -3.49 | 1.34 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -1,611.73 | -1,165.58 | -505.47 | -5,694.56 | -139.14 | -248.66 | 95.13 | -36.39 | 13.92 | -5.33 |
| Capital Expenditure | -25.49 | -36.43 | 42.12 | -62.89 | 19.50 | -7.46 | 2.85 | -1.09 | 0.42 | -0.16 |
| Free Cash Flow | -1,637.22 | -1,202.01 | -463.35 | -5,757.46 | -119.64 | -256.12 | 97.98 | -37.48 | 14.34 | -5.49 |
| WACC | ||||||||||
| PV LFCF | -224.74 | 75.45 | -25.33 | 8.50 | -2.85 | |||||
| SUM PV LFCF | -168.98 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 13.96 |
| Free cash flow (t + 1) | -5.60 |
| Terminal Value | -46.79 |
| Present Value of Terminal Value | -24.34 |
Intrinsic Value
| Enterprise Value | -193.32 |
|---|---|
| Net Debt | 3,504 |
| Equity Value | -3,697.32 |
| Shares Outstanding | 117.23 |
| Equity Value Per Share | -31.54 |