Discounted Cash Flow (DCF) Analysis Levered

Sotherly Hotels Inc. (SOHO)

$1.82

-0.07 (-3.70%)
All numbers are in Millions, Currency in USD
Stock DCF: 470.05 | 1.82 | 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 154.27178.17185.7971.50127.59139.29152.07166.02181.25197.88
Revenue (%)
Operating Cash Flow 15.7626.1622.46-11.262,322.50513.03560.09611.47667.57728.81
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 -1.964.069.80-18.582,309.44498.77544.53594.48649.02708.56

Weighted Average Cost Of Capital

Share price $ 1.82
Beta 1.610
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 11.295
Total Debt -
Total Equity 26.05
Total Capital 26.05
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 154.27178.17185.7971.50127.59139.29152.07166.02181.25197.88
Operating Cash Flow 15.7626.1622.46-11.262,322.50513.03560.09611.47667.57728.81
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 -1.964.069.80-18.582,309.44498.77544.53594.48649.02708.56
WACC
PV LFCF 448.17439.65431.29423.09415.04
SUM PV LFCF 2,157.24

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.29
Free cash flow (t + 1) 722.73
Terminal Value 7,779.62
Present Value of Terminal Value 4,556.98

Intrinsic Value

Enterprise Value 6,714.23
Net Debt -13.17
Equity Value 6,727.39
Shares Outstanding 14.31
Equity Value Per Share 470.05