Discounted Cash Flow (DCF) Analysis Levered

Spirit Realty Capital, Inc. (SRC)

$41.32

+0.25 (+0.61%)

All numbers are in Millions, Currency in USD

Stock DCF: 65.60 | 41.32 | undervalue

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	423.42	512.39	482.15	606.65	705.44	806.34	921.69	1,053.52	1,204.22	1,376.48
Revenue (%)
Operating Cash Flow	336.37	339.05	314.31	411.13	486.45	560.46	640.62	732.26	837	956.73
Operating Cash Flow (%)
Capital Expenditure	-52.39	-47.65	-12.66	-21.96	-88.68	-65.29	-74.63	-85.31	-97.51	-111.46
Capital Expenditure (%)
Free Cash Flow	283.98	291.40	301.65	389.18	397.77	495.16	565.99	646.95	739.49	845.27

Weighted Average Cost Of Capital

Share price	$ 41.32
Beta	1.307
Diluted Shares Outstanding	134.65
Cost of Debt
Tax Rate	0.31
After-tax Cost of Debt	4.22%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.399
Total Debt	3,575.31
Total Equity	5,563.56
Total Capital	9,138.87
Debt Weighting	39.12
Equity Weighting	60.88
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	423.42	512.39	482.15	606.65	705.44	806.34	921.69	1,053.52	1,204.22	1,376.48
Operating Cash Flow	336.37	339.05	314.31	411.13	486.45	560.46	640.62	732.26	837	956.73
Capital Expenditure	-52.39	-47.65	-12.66	-21.96	-88.68	-65.29	-74.63	-85.31	-97.51	-111.46
Free Cash Flow	283.98	291.40	301.65	389.18	397.77	495.16	565.99	646.95	739.49	845.27
WACC
PV LFCF						458.57	485.43	513.86	543.95	575.81
SUM PV LFCF										2,577.61

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.98
Free cash flow (t + 1)	862.17
Terminal Value	14,417.63
Present Value of Terminal Value	9,821.48

Intrinsic Value

Enterprise Value	12,399.09
Net Debt	3,566.54
Equity Value	8,832.55
Shares Outstanding	134.65
Equity Value Per Share	65.60