Discounted Cash Flow (DCF) Analysis Levered

Urban Edge Properties (UE)

$15.59

-0.27 (-1.70%)

All numbers are in Millions, Currency in USD

Stock DCF: -8.99 | 15.59 | 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	414.16	387.65	330.10	425.08	397.94	399.07	400.21	401.36	402.50	403.65
Revenue (%)
Operating Cash Flow	137.04	156.40	112.82	135.27	139.62	139.29	139.69	140.09	140.49	140.89
Operating Cash Flow (%)
Capital Expenditure	-118.77	-91.30	-86.20	-111.01	-103.92	-104.22	-104.51	-104.81	-105.11	-105.41
Capital Expenditure (%)
Free Cash Flow	18.27	65.10	26.62	24.27	35.70	35.08	35.18	35.28	35.38	35.48

Weighted Average Cost Of Capital

Share price	$ 15.59
Beta	1.600
Diluted Shares Outstanding	121.64
Cost of Debt
Tax Rate	8.10
After-tax Cost of Debt	3.10%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.108
Total Debt	1,751.48
Total Equity	1,896.37
Total Capital	3,647.85
Debt Weighting	48.01
Equity Weighting	51.99
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	414.16	387.65	330.10	425.08	397.94	399.07	400.21	401.36	402.50	403.65
Operating Cash Flow	137.04	156.40	112.82	135.27	139.62	139.29	139.69	140.09	140.49	140.89
Capital Expenditure	-118.77	-91.30	-86.20	-111.01	-103.92	-104.22	-104.51	-104.81	-105.11	-105.41
Free Cash Flow	18.27	65.10	26.62	24.27	35.70	35.08	35.18	35.28	35.38	35.48
WACC
PV LFCF						32.55	30.28	28.18	26.22	24.40
SUM PV LFCF										141.62

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.78
Free cash flow (t + 1)	36.19
Terminal Value	626.13
Present Value of Terminal Value	430.50

Intrinsic Value

Enterprise Value	572.12
Net Debt	1,665.96
Equity Value	-1,093.84
Shares Outstanding	121.64
Equity Value Per Share	-8.99