Discounted Cash Flow (DCF) Analysis Unlevered
Hudson Pacific Properties, Inc. (HPP)
$4.73
+0.23 (+5.11%)
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 | 728.42 | 818.18 | 804.96 | 896.84 | 1,026.22 | 1,119.99 | 1,222.32 | 1,334.01 | 1,455.89 | 1,588.92 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 412.41 | 415.33 | 401.37 | 456.09 | 443.51 | 562.94 | 614.37 | 670.51 | 731.77 | 798.64 |
| EBITDA (%) | ||||||||||
| EBIT | 176.57 | 143.62 | 108.97 | 121.52 | 93.40 | 174.68 | 190.64 | 208.06 | 227.07 | 247.82 |
| EBIT (%) | ||||||||||
| Depreciation | 235.83 | 271.71 | 292.40 | 334.57 | 350.11 | 388.26 | 423.73 | 462.45 | 504.70 | 550.82 |
| 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 | 200.62 | 46.22 | 248.80 | 225.88 | 255.76 | 255.82 | 279.20 | 304.71 | 332.55 | 362.94 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 156.37 | 208.33 | 247.79 | 265.65 | 296.73 | 305.19 | 333.08 | 363.51 | 396.73 | 432.98 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | 1.58 | 1.81 | 1.97 | 2.15 | 2.35 | 2.56 | 2.80 |
| Inventories (%) | ||||||||||
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -362.69 | -20.50 | -593.95 | -125.23 | -20.21 | -318.11 | -347.17 | -378.90 | -413.52 | -451.30 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 4.73 |
|---|---|
| Beta | 1.113 |
| Diluted Shares Outstanding | 143.73 |
| Cost of Debt | |
| Tax Rate | 0.00 |
| After-tax Cost of Debt | 37.49% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.951 |
| Total Debt | 399.80 |
| Total Equity | 679.85 |
| Total Capital | 1,079.66 |
| Debt Weighting | 37.03 |
| Equity Weighting | 62.97 |
| 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 | 728.42 | 818.18 | 804.96 | 896.84 | 1,026.22 | 1,119.99 | 1,222.32 | 1,334.01 | 1,455.89 | 1,588.92 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 412.41 | 415.33 | 401.37 | 456.09 | 443.51 | 562.94 | 614.37 | 670.51 | 731.77 | 798.64 |
| EBIT | 176.57 | 143.62 | 108.97 | 121.52 | 93.40 | 174.68 | 190.64 | 208.06 | 227.07 | 247.82 |
| Tax Rate | 11.10% | 21.16% | 87.61% | 65.37% | 0.00% | 37.05% | 37.05% | 37.05% | 37.05% | 37.05% |
| EBIAT | 156.97 | 113.23 | 13.50 | 42.08 | 93.40 | 109.97 | 120.01 | 130.98 | 142.95 | 156.01 |
| Depreciation | 235.83 | 271.71 | 292.40 | 334.57 | 350.11 | 388.26 | 423.73 | 462.45 | 504.70 | 550.82 |
| Accounts Receivable | - | -51.96 | -39.46 | -17.86 | -31.09 | -8.46 | -27.89 | -30.43 | -33.21 | -36.25 |
| Inventories | - | - | - | - | -0.23 | -0.16 | -0.18 | -0.20 | -0.21 | -0.23 |
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure | -362.69 | -20.50 | -593.95 | -125.23 | -20.21 | -318.11 | -347.17 | -378.90 | -413.52 | -451.30 |
| UFCF | 30.11 | 312.48 | -327.50 | 233.57 | 391.99 | 171.49 | 168.51 | 183.90 | 200.70 | 219.04 |
| WACC | ||||||||||
| PV UFCF | 143.48 | 117.96 | 107.71 | 98.35 | 89.81 | |||||
| SUM PV UFCF | 557.31 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 19.52 |
| Free cash flow (t + 1) | 223.42 |
| Terminal Value | 1,275.25 |
| Present Value of Terminal Value | 522.87 |
Intrinsic Value
| Enterprise Value | 1,080.18 |
|---|---|
| Net Debt | 144.04 |
| Equity Value | 936.14 |
| Shares Outstanding | 143.73 |
| Equity Value Per Share | 6.51 |