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: 5.64 | 17.57 | 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 336.89309.18294.12169.15209.38192.73177.41163.30150.32138.37
Revenue (%)
Operating Cash Flow 147.37130.92112.9989.1673.2181.7975.2969.3063.7958.72
Operating Cash Flow (%)
Capital Expenditure -0.96-0.49-0.65-0.38-0.47-0.43-0.39-0.36-0.33-0.31
Capital Expenditure (%)
Free Cash Flow 146.41130.43112.3488.7872.7581.3674.8968.9463.4658.41

Weighted Average Cost Of Capital

Share price $ 17.57
Beta 0.898
Diluted Shares Outstanding 87.39
Cost of Debt
Tax Rate -96.72
After-tax Cost of Debt 4.52%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.587
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
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 336.89309.18294.12169.15209.38192.73177.41163.30150.32138.37
Operating Cash Flow 147.37130.92112.9989.1673.2181.7975.2969.3063.7958.72
Capital Expenditure -0.96-0.49-0.65-0.38-0.47-0.43-0.39-0.36-0.33-0.31
Free Cash Flow 146.41130.43112.3488.7872.7581.3674.8968.9463.4658.41
WACC
PV LFCF 60.9052.1444.6438.2232.73
SUM PV LFCF 284.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.51
Free cash flow (t + 1) 59.58
Terminal Value 1,081.28
Present Value of Terminal Value 752.83

Intrinsic Value

Enterprise Value 1,036.94
Net Debt 543.97
Equity Value 492.97
Shares Outstanding 87.39
Equity Value Per Share 5.64