Discounted Cash Flow (DCF) Analysis Levered
Sotherly Hotels Inc. (SOHO)
$1.69
+0.01 (+0.60%)
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 | 178.17 | 185.79 | 71.50 | 127.59 | 166.08 | 187.40 | 211.47 | 238.62 | 269.27 | 303.84 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 26.16 | 22.46 | -11.26 | 2.32 | 6.66 | 6.32 | 7.13 | 8.04 | 9.07 | 10.24 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -22.10 | -23.05 | -8.87 | -15.83 | -20.60 | -23.25 | -26.24 | -29.60 | -33.41 | -37.70 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 4.06 | -0.59 | -20.13 | -13.51 | -13.95 | -16.93 | -19.11 | -21.56 | -24.33 | -27.46 |
Weighted Average Cost Of Capital
| Share price | $ 1.69 |
|---|---|
| Beta | 1.724 |
| Diluted Shares Outstanding | 17.80 |
| Cost of Debt | |
| Tax Rate | 5.64 |
| After-tax Cost of Debt | 5.77% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 12.712 |
| Total Debt | 323.03 |
| Total Equity | 30.09 |
| Total Capital | 353.11 |
| Debt Weighting | 91.48 |
| Equity Weighting | 8.52 |
| 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 | 178.17 | 185.79 | 71.50 | 127.59 | 166.08 | 187.40 | 211.47 | 238.62 | 269.27 | 303.84 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 26.16 | 22.46 | -11.26 | 2.32 | 6.66 | 6.32 | 7.13 | 8.04 | 9.07 | 10.24 |
| Capital Expenditure | -22.10 | -23.05 | -8.87 | -15.83 | -20.60 | -23.25 | -26.24 | -29.60 | -33.41 | -37.70 |
| Free Cash Flow | 4.06 | -0.59 | -20.13 | -13.51 | -13.95 | -16.93 | -19.11 | -21.56 | -24.33 | -27.46 |
| WACC | ||||||||||
| PV LFCF | -15.92 | -16.89 | -17.92 | -19.01 | -20.16 | |||||
| SUM PV LFCF | -89.89 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.37 |
| Free cash flow (t + 1) | -28.01 |
| Terminal Value | -640.85 |
| Present Value of Terminal Value | -470.61 |
Intrinsic Value
| Enterprise Value | -560.51 |
|---|---|
| Net Debt | 301.11 |
| Equity Value | -861.62 |
| Shares Outstanding | 17.80 |
| Equity Value Per Share | -48.40 |