Discounted Cash Flow (DCF) Analysis Levered

Urban Edge Properties (UE)

$18.17

-0.76 (-4.01%)

All numbers are in Millions, Currency in USD

Stock DCF: -5.56 | 18.17 | 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	407.04	414.16	387.65	330.10	425.08	434.94	445.03	455.35	465.91	476.71
Revenue (%)
Operating Cash Flow	157.90	137.04	156.40	112.82	135.27	155.04	158.63	162.31	166.07	169.93
Operating Cash Flow (%)
Capital Expenditure	-89.34	-118.76	-91.30	-81.62	-105.11	-107.54	-110.04	-112.59	-115.20	-117.87
Capital Expenditure (%)
Free Cash Flow	68.55	18.28	65.10	31.20	30.17	47.49	48.59	49.72	50.87	52.05

Weighted Average Cost Of Capital

Share price	$ 18.17
Beta	1.634
Diluted Shares Outstanding	117.90
Cost of Debt
Tax Rate	5.75
After-tax Cost of Debt	2.95%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.569
Total Debt	1,754.77
Total Equity	2,142.28
Total Capital	3,897.05
Debt Weighting	45.03
Equity Weighting	54.97
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	407.04	414.16	387.65	330.10	425.08	434.94	445.03	455.35	465.91	476.71
Operating Cash Flow	157.90	137.04	156.40	112.82	135.27	155.04	158.63	162.31	166.07	169.93
Capital Expenditure	-89.34	-118.76	-91.30	-81.62	-105.11	-107.54	-110.04	-112.59	-115.20	-117.87
Free Cash Flow	68.55	18.28	65.10	31.20	30.17	47.49	48.59	49.72	50.87	52.05
WACC
PV LFCF						44.33	42.33	40.43	38.61	36.87
SUM PV LFCF										202.57

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.14
Free cash flow (t + 1)	53.10
Terminal Value	1,032.98
Present Value of Terminal Value	731.70

Intrinsic Value

Enterprise Value	934.27
Net Debt	1,590.29
Equity Value	-656.02
Shares Outstanding	117.90
Equity Value Per Share	-5.56