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 325.08336.89309.18294.12169.15147.18128.07111.4396.9684.37
Revenue (%)
Operating Cash Flow 130.63147.37130.92112.9989.1663.9955.6848.4542.1636.68
Operating Cash Flow (%)
Capital Expenditure -192.49-37.9861.53-49.59-28.52-24.82-21.59-18.79-16.35-14.23
Capital Expenditure (%)
Free Cash Flow -61.86109.39192.4563.4060.6339.1834.0929.6625.8122.46

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 325.08336.89309.18294.12169.15147.18128.07111.4396.9684.37
Operating Cash Flow 130.63147.37130.92112.9989.1663.9955.6848.4542.1636.68
Capital Expenditure -192.49-37.9861.53-49.59-28.52-24.82-21.59-18.79-16.35-14.23
Free Cash Flow -61.86109.39192.4563.4060.6339.1834.0929.6625.8122.46
WACC
PV LFCF 37.3130.9125.6121.2217.59
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