Discounted Cash Flow (DCF) Analysis Unlevered

Equity Commonwealth (EQC)

$18.76

-0.19 (-1.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 67.98 | 18.76 | undervalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 127.8566.285863.1460.5252.0644.7838.5233.1328.50
Revenue (%)
EBITDA 115.3825.421.478.48-3.9114.3812.3710.649.157.87
EBITDA (%)
EBIT 86.705.32-16.31-9.33-21.36-0.24-0.21-0.18-0.16-0.13
EBIT (%)
Depreciation 28.6920.1017.7717.8117.4414.6212.5810.829.318
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 2,795.642,987.232,8012,582.222,160.541,997.301,718.021,477.801,271.161,093.41
Total Cash (%)
Account Receivables 19.5514.7015.5516.0115.7412.0410.368.917.666.59
Account Receivables (%)
Inventories 2,825.201,464.601,281.721,395.251,337.451,150.43989.57851.20732.18629.80
Inventories (%)
Accounts Payable 37.1520.5919.7625.9327.3018.7816.1513.9011.9510.28
Accounts Payable (%)
Capital Expenditure -26.05-12.04-6.80-3.58-5.69-6.80-5.85-5.03-4.33-3.72
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 18.76
Beta 0.331
Diluted Shares Outstanding 110.19
Cost of Debt
Tax Rate 2.30
After-tax Cost of Debt 4.88%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.772
Total Debt -
Total Equity 2,067.07
Total Capital 2,067.07
Debt Weighting 0.00
Equity Weighting 100.00
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 127.8566.285863.1460.5252.0644.7838.5233.1328.50
EBITDA 115.3825.421.478.48-3.9114.3812.3710.649.157.87
EBIT 86.705.32-16.31-9.33-21.36-0.24-0.21-0.18-0.16-0.13
Tax Rate 0.30%0.23%-0.74%22.57%2.30%4.93%4.93%4.93%4.93%4.93%
EBIAT 86.445.31-16.43-7.22-20.86-0.23-0.20-0.17-0.15-0.13
Depreciation 28.6920.1017.7717.8117.4414.6212.5810.829.318
Accounts Receivable -4.85-0.85-0.460.273.701.681.451.251.07
Inventories -1,360.60182.88-113.5457.81187.01160.86138.37119.02102.38
Accounts Payable --16.57-0.836.171.36-8.52-2.63-2.26-1.94-1.67
Capital Expenditure -26.05-12.04-6.80-3.58-5.69-6.80-5.85-5.03-4.33-3.72
UFCF 89.071,362.26175.75-100.8250.33189.78166.45143.17123.15105.93
WACC
PV UFCF 179.43148.7812198.4080.02
SUM PV UFCF 627.63

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.77
Free cash flow (t + 1) 110.17
Terminal Value 6,224.30
Present Value of Terminal Value 4,701.95

Intrinsic Value

Enterprise Value 5,329.58
Net Debt -2,160.53
Equity Value 7,490.11
Shares Outstanding 110.19
Equity Value Per Share 67.98