Discounted Cash Flow (DCF) Analysis Levered

Elme Communities (WRE)

$17.57

-0.38 (-2.12%)

All numbers are in Millions, Currency in USD

Stock DCF: -1.06 | 17.57 | overvalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	336.89	309.18	294.12	169.15	137.81	112.28	91.47	74.52	60.72	49.47
Revenue (%)
Operating Cash Flow	147.37	130.92	112.99	89.16	42.69	46.75	38.09	31.03	25.28	20.60
Operating Cash Flow (%)
Capital Expenditure	-37.98	61.53	12.69	7.30	5.94	4.84	3.95	3.21	2.62	2.13
Capital Expenditure (%)
Free Cash Flow	109.39	192.45	125.68	96.45	48.63	51.59	42.03	34.24	27.90	22.73

Weighted Average Cost Of Capital

Share price	$ 17.57
Beta	0.898
Diluted Shares Outstanding	87.39
Cost of Debt
Tax Rate	-80.80
After-tax Cost of Debt	4.27%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.506
Total Debt	552.36
Total Equity	1,535.41
Total Capital	2,087.77
Debt Weighting	26.46
Equity Weighting	73.54
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	336.89	309.18	294.12	169.15	137.81	112.28	91.47	74.52	60.72	49.47
Operating Cash Flow	147.37	130.92	112.99	89.16	42.69	46.75	38.09	31.03	25.28	20.60
Capital Expenditure	-37.98	61.53	12.69	7.30	5.94	4.84	3.95	3.21	2.62	2.13
Free Cash Flow	109.39	192.45	125.68	96.45	48.63	51.59	42.03	34.24	27.90	22.73
WACC
PV LFCF					48.63	48.05	36.45	27.66	20.98	15.92
SUM PV LFCF										149.06

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.38
Free cash flow (t + 1)	23.18
Terminal Value	430.94
Present Value of Terminal Value	301.86

Intrinsic Value

Enterprise Value	450.92
Net Debt	543.97
Equity Value	-93.05
Shares Outstanding	87.39
Equity Value Per Share	-1.06