Discounted Cash Flow (DCF) Analysis Levered

Slate Office REIT (SOT-UN.TO)

$2.07

+0.02 (+0.98%)

All numbers are in Millions, Currency in USD

Stock DCF: -3.62 | 2.07 | 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	209.90	215.52	183.59	172.65	196.52	194.42	192.34	190.28	188.25	186.24
Revenue (%)
Operating Cash Flow	49.39	49.30	46.45	38.23	49.56	46.30	45.80	45.31	44.83	44.35
Operating Cash Flow (%)
Capital Expenditure	-17.55	-26.98	-22.99	-24.70	-22.92	-23.09	-22.84	-22.60	-22.35	-22.12
Capital Expenditure (%)
Free Cash Flow	31.84	22.32	23.46	13.53	26.64	23.21	22.96	22.72	22.48	22.24

Weighted Average Cost Of Capital

Share price	$ 2.07
Beta	1.068
Diluted Shares Outstanding	84.33
Cost of Debt
Tax Rate	4.34
After-tax Cost of Debt	3.86%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.731
Total Debt	1,153.25
Total Equity	174.57
Total Capital	1,327.82
Debt Weighting	86.85
Equity Weighting	13.15
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	209.90	215.52	183.59	172.65	196.52	194.42	192.34	190.28	188.25	186.24
Operating Cash Flow	49.39	49.30	46.45	38.23	49.56	46.30	45.80	45.31	44.83	44.35
Capital Expenditure	-17.55	-26.98	-22.99	-24.70	-22.92	-23.09	-22.84	-22.60	-22.35	-22.12
Free Cash Flow	31.84	22.32	23.46	13.53	26.64	23.21	22.96	22.72	22.48	22.24
WACC
PV LFCF						22.21	21.03	19.91	18.85	17.84
SUM PV LFCF										99.84

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.50
Free cash flow (t + 1)	22.68
Terminal Value	907.20
Present Value of Terminal Value	727.98

Intrinsic Value

Enterprise Value	827.82
Net Debt	1,133.35
Equity Value	-305.53
Shares Outstanding	84.33
Equity Value Per Share	-3.62