Discounted Cash Flow (DCF) Analysis Levered

Washington Prime Group Inc. (WPG)

$0.8323

0.00 (0.00%)

All numbers are in Millions, Currency in USD

Stock DCF: 119.57 | 0.8323 | undervalue

Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	843.48	758.12	723.30	661.48	524.42	466.76	415.44	369.76	329.11	292.92
Revenue (%)
Operating Cash Flow	289.80	327.51	287.25	209.31	78.65	153.01	136.19	121.21	107.89	96.03
Operating Cash Flow (%)
Capital Expenditure	22.65	224.36	39.21	53.45	-181.10	10.50	9.35	8.32	7.40	6.59
Capital Expenditure (%)
Free Cash Flow	312.45	551.87	326.46	262.75	-102.45	163.51	145.53	129.53	115.29	102.61

Weighted Average Cost Of Capital

Share price	$ 0.8,323
Beta	1.459
Diluted Shares Outstanding	25.20
Cost of Debt
Tax Rate	16.41
After-tax Cost of Debt	3.39%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.575
Total Debt	3,861.45
Total Equity	20.97
Total Capital	3,882.43
Debt Weighting	99.46
Equity Weighting	0.54
Wacc

Build Up Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	843.48	758.12	723.30	661.48	524.42	466.76	415.44	369.76	329.11	292.92
Operating Cash Flow	289.80	327.51	287.25	209.31	78.65	153.01	136.19	121.21	107.89	96.03
Capital Expenditure	22.65	224.36	39.21	53.45	-181.10	10.50	9.35	8.32	7.40	6.59
Free Cash Flow	312.45	551.87	326.46	262.75	-102.45	163.51	145.53	129.53	115.29	102.61
WACC
PV LFCF						158.09	136.04	117.07	100.74	86.69
SUM PV LFCF										598.63

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.43
Free cash flow (t + 1)	104.67
Terminal Value	7,319.38
Present Value of Terminal Value	6,183.60

Intrinsic Value

Enterprise Value	6,782.24
Net Debt	3,768.83
Equity Value	3,013.40
Shares Outstanding	25.20
Equity Value Per Share	119.57