Discounted Cash Flow (DCF) Analysis Unlevered
CubeSmart (CUBE)
$44.33
-1.84 (-3.99%)
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 | 597.94 | 643.91 | 679.18 | 822.56 | 1,009.62 | 1,153.54 | 1,317.97 | 1,505.84 | 1,720.48 | 1,965.73 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 371.68 | 408.01 | 421.45 | 69.88 | 695.16 | 611.20 | 698.33 | 797.87 | 911.60 | 1,041.54 |
| EBITDA (%) | ||||||||||
| EBIT | 226.02 | 241.64 | 262.21 | 301.93 | 380.65 | 434.52 | 496.46 | 567.22 | 648.08 | 740.45 |
| EBIT (%) | ||||||||||
| Depreciation | 145.66 | 166.37 | 159.25 | -232.05 | 314.51 | 176.69 | 201.87 | 230.65 | 263.53 | 301.09 |
| 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 | 3.76 | 54.86 | 3.59 | 11.14 | 6.06 | 26.84 | 30.66 | 35.03 | 40.03 | 45.73 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 16.26 | 16.84 | 18.96 | 23.56 | 27.74 | 31.69 | 36.21 | 41.37 | 47.27 | 54 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 149.91 | 137.88 | 159.14 | 199.99 | 213.30 | 266.13 | 304.07 | 347.41 | 396.93 | 453.51 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -86 | -102.83 | -103.07 | -124.83 | -153.22 | -175.06 | -200.01 | -228.52 | -261.10 | -298.32 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 44.33 |
|---|---|
| Beta | 0.591 |
| Diluted Shares Outstanding | 225.88 |
| Cost of Debt | |
| Tax Rate | 0.00 |
| After-tax Cost of Debt | 153.18% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.288 |
| Total Debt | 60.90 |
| Total Equity | 10,013.30 |
| Total Capital | 10,074.20 |
| Debt Weighting | 0.60 |
| Equity Weighting | 99.40 |
| 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 | 597.94 | 643.91 | 679.18 | 822.56 | 1,009.62 | 1,153.54 | 1,317.97 | 1,505.84 | 1,720.48 | 1,965.73 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 371.68 | 408.01 | 421.45 | 69.88 | 695.16 | 611.20 | 698.33 | 797.87 | 911.60 | 1,041.54 |
| EBIT | 226.02 | 241.64 | 262.21 | 301.93 | 380.65 | 434.52 | 496.46 | 567.22 | 648.08 | 740.45 |
| Tax Rate | 0.97% | 0.97% | 1.19% | 3.18% | 0.00% | 1.26% | 1.26% | 1.26% | 1.26% | 1.26% |
| EBIAT | 223.84 | 239.30 | 259.09 | 292.34 | 380.65 | 429.04 | 490.20 | 560.08 | 639.91 | 731.13 |
| Depreciation | 145.66 | 166.37 | 159.25 | -232.05 | 314.51 | 176.69 | 201.87 | 230.65 | 263.53 | 301.09 |
| Accounts Receivable | - | -0.58 | -2.12 | -4.60 | -4.18 | -3.95 | -4.52 | -5.16 | -5.90 | -6.74 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | -12.03 | 21.26 | 40.85 | 13.31 | 52.83 | 37.94 | 43.34 | 49.52 | 56.58 |
| Capital Expenditure | -86 | -102.83 | -103.07 | -124.83 | -153.22 | -175.06 | -200.01 | -228.52 | -261.10 | -298.32 |
| UFCF | 283.50 | 290.23 | 334.40 | -28.30 | 551.07 | 479.55 | 525.48 | 600.38 | 685.96 | 783.74 |
| WACC | ||||||||||
| PV UFCF | 447.43 | 457.43 | 487.63 | 519.81 | 554.12 | |||||
| SUM PV UFCF | 2,466.42 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.18 |
| Free cash flow (t + 1) | 799.42 |
| Terminal Value | 15,432.75 |
| Present Value of Terminal Value | 10,911.25 |
Intrinsic Value
| Enterprise Value | 13,377.67 |
|---|---|
| Net Debt | 54.84 |
| Equity Value | 13,322.83 |
| Shares Outstanding | 225.88 |
| Equity Value Per Share | 58.98 |