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 638.84688.58777.88882.64933.141,026.321,128.801,241.521,365.501,501.85
Revenue (%)
EBITDA 979.701,381.881,371.731,134.571,649.641,715.401,886.702,075.102,282.312,510.22
EBITDA (%)
EBIT 966.551,367.781,353.021,100.611,624.401,688.591,857.212,042.662,246.642,470.98
EBIT (%)
Depreciation 13.1514.1018.7133.9625.2426.8129.4932.4435.6839.24
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 23.7925.71477.33121.7273.41185.72204.26224.66247.09271.77
Total Cash (%)
Account Receivables 9.189.8913.9715.4117.8717.1018.8020.6822.7525.02
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 81.41108.43116.5458.3856.84115.31126.83139.49153.42168.74
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 638.84688.58777.88882.64933.141,026.321,128.801,241.521,365.501,501.85
EBITDA 979.701,381.881,371.731,134.571,649.641,715.401,886.702,075.102,282.312,510.22
EBIT 966.551,367.781,353.021,100.611,624.401,688.591,857.212,042.662,246.642,470.98
Tax Rate 0.88%1.52%1.84%2.99%5.51%2.55%2.55%2.55%2.55%2.55%
EBIAT 958.071,346.971,328.181,067.681,534.931,645.581,809.901,990.632,189.412,408.04
Depreciation 13.1514.1018.7133.9625.2426.8129.4932.4435.6839.24
Accounts Receivable --0.71-4.09-1.44-2.450.77-1.71-1.88-2.07-2.27
Inventories ----------
Accounts Payable -27.028.12-58.17-1.5458.4811.5112.6613.9315.32
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 516.62987.108.77797.181,256.76989.291,032.721,135.851,249.271,374.02
WACC
PV UFCF 936.12924.70962.371,001.581,042.39
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