Discounted Cash Flow (DCF) Analysis Levered

Washington Real Estate Investment T... (WRE)

$23.18

+0.05 (+0.22%)

All numbers are in Millions, Currency in USD

Stock DCF: 5.65 | 23.18 | 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	325.08	336.89	309.18	294.12	169.15	147.18	128.07	111.43	96.96	84.37
Revenue (%)
Operating Cash Flow	130.63	147.37	130.92	112.99	89.16	63.99	55.68	48.45	42.16	36.68
Operating Cash Flow (%)
Capital Expenditure	-192.49	-37.98	61.53	-49.59	-28.52	-24.82	-21.59	-18.79	-16.35	-14.23
Capital Expenditure (%)
Free Cash Flow	-61.86	109.39	192.45	63.40	60.63	39.18	34.09	29.66	25.81	22.46

Weighted Average Cost Of Capital

Share price	$ 23.18
Beta	0.863
Diluted Shares Outstanding	82.35
Cost of Debt
Tax Rate	130.83
After-tax Cost of Debt	-2.11%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.858
Total Debt	496.95
Total Equity	1,908.83
Total Capital	2,405.77
Debt Weighting	20.66
Equity Weighting	79.34
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	325.08	336.89	309.18	294.12	169.15	147.18	128.07	111.43	96.96	84.37
Operating Cash Flow	130.63	147.37	130.92	112.99	89.16	63.99	55.68	48.45	42.16	36.68
Capital Expenditure	-192.49	-37.98	61.53	-49.59	-28.52	-24.82	-21.59	-18.79	-16.35	-14.23
Free Cash Flow	-61.86	109.39	192.45	63.40	60.63	39.18	34.09	29.66	25.81	22.46
WACC
PV LFCF						37.31	30.91	25.61	21.22	17.59
SUM PV LFCF										132.64

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.01
Free cash flow (t + 1)	22.91
Terminal Value	760.97
Present Value of Terminal Value	595.96

Intrinsic Value

Enterprise Value	728.60
Net Debt	263.35
Equity Value	465.26
Shares Outstanding	82.35
Equity Value Per Share	5.65