Discounted Cash Flow (DCF) Analysis Unlevered
Apple Hospitality REIT, Inc. (APLE)
$15.1
+0.30 (+2.03%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 1,270.56 | 1,266.60 | 601.88 | 933.87 | 1,238.42 | 1,346.71 | 1,464.47 | 1,592.54 | 1,731.80 | 1,883.23 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 441.34 | 427.03 | 97.75 | 271.51 | 388.17 | 390.84 | 425.02 | 462.18 | 502.60 | 546.55 |
| EBITDA (%) | ||||||||||
| EBIT | 257.86 | 233.79 | -102.04 | 87.04 | 206.48 | 128.73 | 139.98 | 152.22 | 165.53 | 180.01 |
| EBIT (%) | ||||||||||
| Depreciation | 183.48 | 193.24 | 199.79 | 184.47 | 181.70 | 262.11 | 285.04 | 309.96 | 337.07 | 366.54 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Total Cash | 33.63 | 34.66 | 5.56 | 3.28 | 4.08 | 18.82 | 20.47 | 22.26 | 24.20 | 26.32 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 29.09 | 26.93 | 22.14 | 40.05 | 43.33 | 42.77 | 46.52 | 50.58 | 55.01 | 59.82 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 107.42 | 114.36 | 97.86 | 92.67 | 116.06 | 142.85 | 155.35 | 168.93 | 183.70 | 199.77 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -74.29 | -74.90 | -48.56 | -18.31 | -59.38 | -71.60 | -77.86 | -84.67 | -92.08 | -100.13 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 15.1 |
|---|---|
| Beta | 1.191 |
| Diluted Shares Outstanding | 228.95 |
| Cost of Debt | |
| Tax Rate | 1.32 |
| After-tax Cost of Debt | 3.99% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.103 |
| Total Debt | 1,478.26 |
| Total Equity | 3,457.08 |
| Total Capital | 4,935.34 |
| Debt Weighting | 29.95 |
| Equity Weighting | 70.05 |
| Wacc |
Build Up Free Cash
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 1,270.56 | 1,266.60 | 601.88 | 933.87 | 1,238.42 | 1,346.71 | 1,464.47 | 1,592.54 | 1,731.80 | 1,883.23 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 441.34 | 427.03 | 97.75 | 271.51 | 388.17 | 390.84 | 425.02 | 462.18 | 502.60 | 546.55 |
| EBIT | 257.86 | 233.79 | -102.04 | 87.04 | 206.48 | 128.73 | 139.98 | 152.22 | 165.53 | 180.01 |
| Tax Rate | 0.28% | 0.39% | -0.19% | 2.43% | 1.32% | 0.85% | 0.85% | 0.85% | 0.85% | 0.85% |
| EBIAT | 257.13 | 232.87 | -102.24 | 84.93 | 203.75 | 127.64 | 138.80 | 150.93 | 164.13 | 178.49 |
| Depreciation | 183.48 | 193.24 | 199.79 | 184.47 | 181.70 | 262.11 | 285.04 | 309.96 | 337.07 | 366.54 |
| Accounts Receivable | - | 2.16 | 4.79 | -17.91 | -3.28 | 0.56 | -3.74 | -4.07 | -4.42 | -4.81 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 6.94 | -16.50 | -5.19 | 23.39 | 26.79 | 12.49 | 13.58 | 14.77 | 16.06 |
| Capital Expenditure | -74.29 | -74.90 | -48.56 | -18.31 | -59.38 | -71.60 | -77.86 | -84.67 | -92.08 | -100.13 |
| UFCF | 366.31 | 360.32 | 37.28 | 227.99 | 346.18 | 345.50 | 354.72 | 385.74 | 419.47 | 456.15 |
| WACC | ||||||||||
| PV UFCF | 321.18 | 306.55 | 309.90 | 313.28 | 316.70 | |||||
| SUM PV UFCF | 1,567.63 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.57 |
| Free cash flow (t + 1) | 465.28 |
| Terminal Value | 8,353.25 |
| Present Value of Terminal Value | 5,799.62 |
Intrinsic Value
| Enterprise Value | 7,367.25 |
|---|---|
| Net Debt | 1,474.18 |
| Equity Value | 5,893.07 |
| Shares Outstanding | 228.95 |
| Equity Value Per Share | 25.74 |