Discounted Cash Flow (DCF) Analysis Unlevered

Equity Commonwealth (EQC)

$27.09

+0.38 (+1.42%)
All numbers are in Millions, Currency in USD
Stock DCF: 28.70 | 27.09 | 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 340.57197.02127.8566.285838.0124.9016.3210.697.01
Revenue (%)
EBITDA 174.49351.25531.56472.268.30104.3068.3444.7829.3419.22
EBITDA (%)
EBIT 82.34302.55502.87452.16-9.4894.0261.6140.3726.4517.33
EBIT (%)
Depreciation 92.1548.7028.6820.1017.7710.276.734.412.891.89
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 2,351.692,400.802,795.642,987.222,8011,020.97668.98438.34287.22188.20
Total Cash (%)
Account Receivables 93.4451.0919.5514.7015.558.945.863.842.521.65
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 69.2262.3737.1520.5919.7611.117.284.773.132.05
Accounts Payable (%)
Capital Expenditure ----------
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 27.09
Beta 0.340
Diluted Shares Outstanding 121.41
Cost of Debt
Tax Rate -0.53
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.309
Total Debt -
Total Equity 3,289.02
Total Capital 3,289.02
Debt Weighting 0.00
Equity Weighting 100.00
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 340.57197.02127.8566.285838.0124.9016.3210.697.01
EBITDA 174.49351.25531.56472.268.30104.3068.3444.7829.3419.22
EBIT 82.34302.55502.87452.16-9.4894.0261.6140.3726.4517.33
Tax Rate 1.69%1.18%0.30%0.23%-0.53%0.57%0.57%0.57%0.57%0.57%
EBIAT 80.95298.99501.38451.12-9.5393.4861.2540.1426.3017.23
Depreciation 92.1548.7028.6820.1017.7710.276.734.412.891.89
Accounts Receivable -42.3531.544.85-0.856.613.082.021.320.87
Inventories ----------
Accounts Payable --6.85-25.21-16.57-0.83-8.65-3.83-2.51-1.64-1.08
Capital Expenditure ----------
UFCF -----101.7167.2444.0628.8718.92
WACC
PV UFCF 96.5860.6337.7223.4714.60
SUM PV UFCF 233.01

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.31
Free cash flow (t + 1) 19.29
Terminal Value 582.89
Present Value of Terminal Value 450.03

Intrinsic Value

Enterprise Value 683.04
Net Debt -2,801
Equity Value 3,484.04
Shares Outstanding 121.41
Equity Value Per Share 28.70