Discounted Cash Flow (DCF) Analysis Unlevered
Franklin Street Properties Corp. (FSP)
$1.83
+0.05 (+2.81%)
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 | 268.87 | 269.07 | 245.85 | 209.36 | 165.62 | 147.28 | 130.97 | 116.47 | 103.57 | 92.10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 148.97 | 137.29 | 160.47 | 206.63 | 67 | 91.56 | 81.42 | 72.41 | 64.39 | 57.26 |
| EBITDA (%) | ||||||||||
| EBIT | 51.80 | 43.50 | 68.89 | 125.63 | 1.30 | 36.60 | 32.54 | 28.94 | 25.74 | 22.89 |
| EBIT (%) | ||||||||||
| Depreciation | 97.17 | 93.79 | 91.58 | 81.01 | 65.70 | 54.97 | 48.88 | 43.47 | 38.65 | 34.37 |
| 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 | 11.18 | 9.79 | 2.65 | 34.31 | 6.63 | 8.62 | 7.67 | 6.82 | 6.06 | 5.39 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 128.60 | 91.73 | 96.45 | 74.98 | 54.94 | 56.01 | 49.80 | 44.29 | 39.39 | 35.02 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | - | - | 72.06 | 89.49 | 50.37 | 50.30 | 44.73 | 39.78 | 35.38 | 31.46 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -51.06 | -70.75 | -77.92 | -64.83 | -54.91 | -41.56 | -36.96 | -32.87 | -29.23 | -25.99 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 1.83 |
|---|---|
| Beta | 0.863 |
| Diluted Shares Outstanding | 103.34 |
| Cost of Debt | |
| Tax Rate | 15.72 |
| After-tax Cost of Debt | 4.21% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.677 |
| Total Debt | 0.76 |
| Total Equity | 189.11 |
| Total Capital | 189.87 |
| Debt Weighting | 0.40 |
| Equity Weighting | 99.60 |
| 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 | 268.87 | 269.07 | 245.85 | 209.36 | 165.62 | 147.28 | 130.97 | 116.47 | 103.57 | 92.10 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 148.97 | 137.29 | 160.47 | 206.63 | 67 | 91.56 | 81.42 | 72.41 | 64.39 | 57.26 |
| EBIT | 51.80 | 43.50 | 68.89 | 125.63 | 1.30 | 36.60 | 32.54 | 28.94 | 25.74 | 22.89 |
| Tax Rate | 2.68% | 3.99% | 0.76% | 0.23% | 15.72% | 4.68% | 4.68% | 4.68% | 4.68% | 4.68% |
| EBIAT | 50.41 | 41.77 | 68.37 | 125.33 | 1.09 | 34.89 | 31.02 | 27.59 | 24.53 | 21.82 |
| Depreciation | 97.17 | 93.79 | 91.58 | 81.01 | 65.70 | 54.97 | 48.88 | 43.47 | 38.65 | 34.37 |
| Accounts Receivable | - | 36.87 | -4.71 | 21.47 | 20.04 | -1.07 | 6.20 | 5.51 | 4.90 | 4.36 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | - | - | 17.44 | -39.13 | -0.06 | -5.57 | -4.95 | -4.40 | -3.92 |
| Capital Expenditure | -51.06 | -70.75 | -77.92 | -64.83 | -54.91 | -41.56 | -36.96 | -32.87 | -29.23 | -25.99 |
| UFCF | 96.53 | 101.68 | 77.32 | 180.41 | -7.21 | 47.16 | 43.58 | 38.75 | 34.46 | 30.64 |
| WACC | ||||||||||
| PV UFCF | 43.81 | 37.59 | 31.05 | 25.65 | 21.19 | |||||
| SUM PV UFCF | 159.29 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.66 |
| Free cash flow (t + 1) | 31.26 |
| Terminal Value | 552.23 |
| Present Value of Terminal Value | 381.81 |
Intrinsic Value
| Enterprise Value | 541.10 |
|---|---|
| Net Debt | -5.87 |
| Equity Value | 546.98 |
| Shares Outstanding | 103.34 |
| Equity Value Per Share | 5.29 |