Discounted Cash Flow (DCF) Analysis Unlevered
Diversified Healthcare Trust (DHC)
$0.7023
-0.01 (-1.27%)
All numbers are in Millions, Currency in USD
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 | 1,074.82 | 1,117.16 | 1,040.16 | 1,632.03 | 1,383.21 | 1,517.05 | 1,663.83 | 1,824.82 | 2,001.39 | 2,195.04 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 584.59 | 747.08 | 374.55 | 326.02 | 702.83 | 691.96 | 758.91 | 832.34 | 912.87 | 1,001.20 |
| EBITDA (%) | ||||||||||
| EBIT | 313.08 | 466.64 | 92.31 | 63.28 | 431.70 | 348.50 | 382.22 | 419.20 | 459.76 | 504.25 |
| EBIT (%) | ||||||||||
| Depreciation | 271.51 | 280.45 | 282.23 | 262.74 | 271.13 | 343.46 | 376.69 | 413.14 | 453.11 | 496.95 |
| 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 | 31.24 | 54.98 | 37.36 | 74.42 | 849.98 | 234.92 | 257.65 | 282.58 | 309.93 | 339.91 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 18.54 | 18.70 | 1.99 | 19.53 | 16.55 | 18.15 | 19.91 | 21.84 | 23.95 | 26.27 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -221.43 | 99.09 | -18.81 | -73.66 | -62.43 | -68.47 | -75.10 | -82.37 | -90.33 | -99.07 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 0.7,023 |
|---|---|
| Beta | 1.774 |
| Diluted Shares Outstanding | 237.74 |
| Cost of Debt | |
| Tax Rate | 3.77 |
| After-tax Cost of Debt | 6.69% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 12.012 |
| Total Debt | 3,679.08 |
| Total Equity | 166.96 |
| Total Capital | 3,846.04 |
| Debt Weighting | 95.66 |
| Equity Weighting | 4.34 |
| 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 | 1,074.82 | 1,117.16 | 1,040.16 | 1,632.03 | 1,383.21 | 1,517.05 | 1,663.83 | 1,824.82 | 2,001.39 | 2,195.04 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 584.59 | 747.08 | 374.55 | 326.02 | 702.83 | 691.96 | 758.91 | 832.34 | 912.87 | 1,001.20 |
| EBIT | 313.08 | 466.64 | 92.31 | 63.28 | 431.70 | 348.50 | 382.22 | 419.20 | 459.76 | 504.25 |
| Tax Rate | -39.79% | 1.88% | -6.51% | -4.81% | 3.77% | -9.09% | -9.09% | -9.09% | -9.09% | -9.09% |
| EBIAT | 437.66 | 457.85 | 98.32 | 66.32 | 415.42 | 380.18 | 416.97 | 457.31 | 501.56 | 550.09 |
| Depreciation | 271.51 | 280.45 | 282.23 | 262.74 | 271.13 | 343.46 | 376.69 | 413.14 | 453.11 | 496.95 |
| Accounts Receivable | - | -0.16 | 16.71 | -17.54 | 2.98 | -1.60 | -1.76 | -1.93 | -2.11 | -2.32 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure | -221.44 | 99.09 | -18.81 | -73.66 | -62.43 | -68.47 | -75.10 | -82.37 | -90.33 | -99.07 |
| UFCF | 487.74 | 837.23 | 378.46 | 237.86 | 627.10 | 653.56 | 716.80 | 786.15 | 862.22 | 945.65 |
| WACC | ||||||||||
| PV UFCF | 611.26 | 627.02 | 643.18 | 659.76 | 676.76 | |||||
| SUM PV UFCF | 3,217.97 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.92 |
| Free cash flow (t + 1) | 964.56 |
| Terminal Value | 19,604.89 |
| Present Value of Terminal Value | 14,030.38 |
Intrinsic Value
| Enterprise Value | 17,248.36 |
|---|---|
| Net Debt | 3,044.23 |
| Equity Value | 14,204.13 |
| Shares Outstanding | 237.74 |
| Equity Value Per Share | 59.75 |