Discounted Cash Flow (DCF) Analysis Unlevered

Canadian Apartment Properties Real ... (CAR-UN.TO)

$49.31

+0.54 (+1.11%)

All numbers are in Millions, Currency in USD

Stock DCF: 159.96 | 49.31 | undervalue

Operating Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	638.84	688.58	777.88	882.64	933.14	1,026.32	1,128.80	1,241.52	1,365.50	1,501.85
Revenue (%)
EBITDA	979.70	1,381.88	1,371.73	1,134.57	1,649.64	1,715.40	1,886.70	2,075.10	2,282.31	2,510.22
EBITDA (%)
EBIT	966.55	1,367.78	1,353.02	1,100.61	1,624.40	1,688.59	1,857.21	2,042.66	2,246.64	2,470.98
EBIT (%)
Depreciation	13.15	14.10	18.71	33.96	25.24	26.81	29.49	32.44	35.68	39.24
Depreciation (%)

Balance Sheet Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Total Cash	23.79	25.71	477.33	121.72	73.41	185.72	204.26	224.66	247.09	271.77
Total Cash (%)
Account Receivables	9.18	9.89	13.97	15.41	17.87	17.10	18.80	20.68	22.75	25.02
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	81.41	108.43	116.54	58.38	56.84	115.31	126.83	139.49	153.42	168.74
Accounts Payable (%)
Capital Expenditure	-454.60	-400.28	-1,342.15	-244.86	-299.42	-742.35	-816.48	-898.01	-987.68	-1,086.31
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 49.31
Beta	1.022
Diluted Shares Outstanding	171.12
Cost of Debt
Tax Rate	5.51
After-tax Cost of Debt	2.20%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.342
Total Debt	6,460.37
Total Equity	8,438.08
Total Capital	14,898.44
Debt Weighting	43.36
Equity Weighting	56.64
Wacc

Build Up Free Cash

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	638.84	688.58	777.88	882.64	933.14	1,026.32	1,128.80	1,241.52	1,365.50	1,501.85
EBITDA	979.70	1,381.88	1,371.73	1,134.57	1,649.64	1,715.40	1,886.70	2,075.10	2,282.31	2,510.22
EBIT	966.55	1,367.78	1,353.02	1,100.61	1,624.40	1,688.59	1,857.21	2,042.66	2,246.64	2,470.98
Tax Rate	0.88%	1.52%	1.84%	2.99%	5.51%	2.55%	2.55%	2.55%	2.55%	2.55%
EBIAT	958.07	1,346.97	1,328.18	1,067.68	1,534.93	1,645.58	1,809.90	1,990.63	2,189.41	2,408.04
Depreciation	13.15	14.10	18.71	33.96	25.24	26.81	29.49	32.44	35.68	39.24
Accounts Receivable	-	-0.71	-4.09	-1.44	-2.45	0.77	-1.71	-1.88	-2.07	-2.27
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	27.02	8.12	-58.17	-1.54	58.48	11.51	12.66	13.93	15.32
Capital Expenditure	-454.60	-400.28	-1,342.15	-244.86	-299.42	-742.35	-816.48	-898.01	-987.68	-1,086.31
UFCF	516.62	987.10	8.77	797.18	1,256.76	989.29	1,032.72	1,135.85	1,249.27	1,374.02
WACC
PV UFCF						936.12	924.70	962.37	1,001.58	1,042.39
SUM PV UFCF										4,867.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.68
Free cash flow (t + 1)	1,401.50
Terminal Value	38,084.25
Present Value of Terminal Value	28,892.25

Intrinsic Value

Enterprise Value	33,759.40
Net Debt	6,386.95
Equity Value	27,372.45
Shares Outstanding	171.12
Equity Value Per Share	159.96