Discounted Cash Flow (DCF) Analysis Unlevered

Kilroy Realty Corporation (KRC)

$42.58

+1.31 (+3.17%)
All numbers are in Millions, Currency in USD
Stock DCF: -204.09 | 42.58 | overvalue

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 719747.30837.45898.40955.041,025.671,101.521,182.991,270.471,364.43
Revenue (%)
EBITDA 476.54562.98517.79558.011,017.98763.39819.85880.48945.601,015.53
EBITDA (%)
EBIT 230.65308.70243.98257.88706.70420.98452.11485.55521.46560.02
EBIT (%)
Depreciation 245.89254.28273.81300.13311.28342.41367.74394.93424.14455.51
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 78.3273.3887.14759.47441.55332.09356.65383.02411.35441.77
Total Cash (%)
Account Receivables 283.23289.30366.08398.67420.05431.14463.03497.27534.04573.54
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 249.64374.41418.85445.10391.26462.27496.45533.17572.60614.95
Accounts Payable (%)
Capital Expenditure -505.69-966.98-1,166.44-616.07-1,797.80-1,222.25-1,312.64-1,409.72-1,513.98-1,625.94
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 42.58
Beta 0.833
Diluted Shares Outstanding 116.96
Cost of Debt
Tax Rate 4.67
After-tax Cost of Debt 1.78%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.622
Total Debt 4,194.30
Total Equity 4,980.27
Total Capital 9,174.57
Debt Weighting 45.72
Equity Weighting 54.28
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 719747.30837.45898.40955.041,025.671,101.521,182.991,270.471,364.43
EBITDA 476.54562.98517.79558.011,017.98763.39819.85880.48945.601,015.53
EBIT 230.65308.70243.98257.88706.70420.98452.11485.55521.46560.02
Tax Rate 8.86%7.02%9.19%9.74%4.67%7.90%7.90%7.90%7.90%7.90%
EBIAT 210.22287.02221.55232.76673.70387.74416.41447.21480.28515.80
Depreciation 245.89254.28273.81300.13311.28342.41367.74394.93424.14455.51
Accounts Receivable --6.07-76.78-32.59-21.39-11.09-31.88-34.24-36.78-39.50
Inventories ----------
Accounts Payable -124.7844.4326.25-53.847134.1936.7239.4342.35
Capital Expenditure -505.69-966.98-1,166.44-616.07-1,797.80-1,222.25-1,312.64-1,409.72-1,513.98-1,625.94
UFCF -49.59-306.96-703.43-89.51-888.04-432.18-526.19-565.10-606.90-651.78
WACC
PV UFCF -411.80-477.72-488.86-500.25-511.90
SUM PV UFCF -2,390.53

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.95
Free cash flow (t + 1) -664.81
Terminal Value -22,536.10
Present Value of Terminal Value -17,699.72

Intrinsic Value

Enterprise Value -20,090.26
Net Debt 3,780.22
Equity Value -23,870.48
Shares Outstanding 116.96
Equity Value Per Share -204.09