Discounted Cash Flow (DCF) Analysis Levered

Spirit Realty Capital, Inc. (SRC)

$43.65

-0.15 (-0.34%)

All numbers are in Millions, Currency in USD

Stock DCF: -6.74 | 43.65 | overvalue

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	668.96	445.12	516.43	483.62	608.39	611.44	614.51	617.59	620.68	623.80
Revenue (%)
Operating Cash Flow	386.39	336.36	339.05	314.31	411.13	405.45	407.48	409.52	411.57	413.64
Operating Cash Flow (%)
Capital Expenditure	192.56	-163.05	-1,041.92	-12.66	-21.96	-263.93	-265.25	-266.58	-267.92	-269.26
Capital Expenditure (%)
Free Cash Flow	578.95	173.32	-702.87	301.65	389.18	141.52	142.23	142.94	143.66	144.38

Weighted Average Cost Of Capital

Share price	$ 43.65
Beta	1.299
Diluted Shares Outstanding	104.54
Cost of Debt
Tax Rate	0.35
After-tax Cost of Debt	4.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.770
Total Debt	3,012.59
Total Equity	4,562.97
Total Capital	7,575.56
Debt Weighting	39.77
Equity Weighting	60.23
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	668.96	445.12	516.43	483.62	608.39	611.44	614.51	617.59	620.68	623.80
Operating Cash Flow	386.39	336.36	339.05	314.31	411.13	405.45	407.48	409.52	411.57	413.64
Capital Expenditure	192.56	-163.05	-1,041.92	-12.66	-21.96	-263.93	-265.25	-266.58	-267.92	-269.26
Free Cash Flow	578.95	173.32	-702.87	301.65	389.18	141.52	142.23	142.94	143.66	144.38
WACC
PV LFCF						131.19	122.23	113.88	106.10	98.85
SUM PV LFCF										572.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.87
Free cash flow (t + 1)	147.26
Terminal Value	2,508.74
Present Value of Terminal Value	1,717.72

Intrinsic Value

Enterprise Value	2,289.97
Net Debt	2,994.79
Equity Value	-704.82
Shares Outstanding	104.54
Equity Value Per Share	-6.74