Discounted Cash Flow (DCF) Analysis Levered

Sotherly Hotels Inc. (SOHO)

$2.43

-0.02 (-0.82%)

All numbers are in Millions, Currency in USD

Stock DCF: 476.44 | 2.43 | 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	154.27	178.17	185.79	71.50	127.59	139.29	152.07	166.02	181.25	197.88
Revenue (%)
Operating Cash Flow	15.76	26.16	22.46	-11.26	2,322.50	513.03	560.09	611.47	667.57	728.81
Operating Cash Flow (%)
Capital Expenditure	-17.72	-22.10	-12.66	-7.32	-13.06	-14.26	-15.57	-16.99	-18.55	-20.26
Capital Expenditure (%)
Free Cash Flow	-1.96	4.06	9.80	-18.58	2,309.44	498.77	544.53	594.48	649.02	708.56

Weighted Average Cost Of Capital

Share price	$ 2.43
Beta	1.621
Diluted Shares Outstanding	14.31
Cost of Debt
Tax Rate	-0.10
After-tax Cost of Debt	5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.168
Total Debt	-
Total Equity	34.78
Total Capital	34.78
Debt Weighting	0.00
Equity Weighting	100.00
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	154.27	178.17	185.79	71.50	127.59	139.29	152.07	166.02	181.25	197.88
Operating Cash Flow	15.76	26.16	22.46	-11.26	2,322.50	513.03	560.09	611.47	667.57	728.81
Capital Expenditure	-17.72	-22.10	-12.66	-7.32	-13.06	-14.26	-15.57	-16.99	-18.55	-20.26
Free Cash Flow	-1.96	4.06	9.80	-18.58	2,309.44	498.77	544.53	594.48	649.02	708.56
WACC
PV LFCF						448.66	440.60	432.69	424.92	417.29
SUM PV LFCF										2,164.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.17
Free cash flow (t + 1)	722.73
Terminal Value	7,881.42
Present Value of Terminal Value	4,641.59

Intrinsic Value

Enterprise Value	6,805.74
Net Debt	-13.17
Equity Value	6,818.90
Shares Outstanding	14.31
Equity Value Per Share	476.44