Discounted Cash Flow (DCF) Analysis Levered

Slate Grocery REIT (SGR-UN.TO)

$13.38

+0.15 (+1.13%)
All numbers are in Millions, Currency in USD
Stock DCF: 10.93 | 13.38 | overvalue

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 144.21141.31126.13138.27177.48188.68200.58213.23226.68240.98
Revenue (%)
Operating Cash Flow 57.8244.4839.3550.8058.9965.1969.3073.6778.3283.26
Operating Cash Flow (%)
Capital Expenditure -5.55-2.51-2.74-4.69-7.04-5.72-6.08-6.47-6.87-7.31
Capital Expenditure (%)
Free Cash Flow 52.2741.9636.6146.1251.9559.4763.2267.2071.4475.95

Weighted Average Cost Of Capital

Share price $ 13.38
Beta 1.467
Diluted Shares Outstanding 61.10
Cost of Debt
Tax Rate 25.85
After-tax Cost of Debt 2.71%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.305
Total Debt 1,131.49
Total Equity 817.53
Total Capital 1,949.02
Debt Weighting 58.05
Equity Weighting 41.95
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 144.21141.31126.13138.27177.48188.68200.58213.23226.68240.98
Operating Cash Flow 57.8244.4839.3550.8058.9965.1969.3073.6778.3283.26
Capital Expenditure -5.55-2.51-2.74-4.69-7.04-5.72-6.08-6.47-6.87-7.31
Free Cash Flow 52.2741.9636.6146.1251.9559.4763.2267.2071.4475.95
WACC
PV LFCF 56.1656.3856.6056.8357.05
SUM PV LFCF 283.01

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.89
Free cash flow (t + 1) 77.47
Terminal Value 1,991.47
Present Value of Terminal Value 1,495.89

Intrinsic Value

Enterprise Value 1,778.90
Net Debt 1,111.10
Equity Value 667.81
Shares Outstanding 61.10
Equity Value Per Share 10.93