Discounted Cash Flow (DCF) Analysis Unlevered

Kilroy Realty Corporation (KRC)

$38.59

+0.01 (+0.00%)

All numbers are in Millions, Currency in USD

Stock DCF: -280.80 | 38.59 | overvalue

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	747.30	837.45	898.40	955.04	1,096.99	1,208.08	1,330.43	1,465.17	1,613.55	1,776.96
Revenue (%)
EBITDA	440.36	500.09	541.84	596.63	684.05	733.99	808.32	890.19	980.34	1,079.62
EBITDA (%)
EBIT	186.08	226.28	241.70	285.34	325.67	334.37	368.23	405.53	446.59	491.82
EBIT (%)
Depreciation	254.28	273.81	300.13	311.28	358.38	399.62	440.09	484.66	533.74	587.80
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	73.38	87.14	759.47	441.55	370.93	446.53	491.75	541.55	596.40	656.79
Total Cash (%)
Account Receivables	287.18	364.43	398.67	420.05	472.78	515.61	567.83	625.34	688.67	758.41
Account Receivables (%)
Inventories	-13.93	-15.61	-16.74	-17.80	-20.44	-22.51	-24.79	-27.31	-30.07	-33.12
Inventories (%)
Accounts Payable	374.42	418.85	445.10	391.26	392.36	547.01	602.41	663.42	730.60	804.59
Accounts Payable (%)
Capital Expenditure	-1,224.32	-1,352.70	-616.07	-1,797.80	-586.61	-1,535.83	-1,691.37	-1,862.66	-2,051.30	-2,259.04
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 38.59
Beta	1.017
Diluted Shares Outstanding	117.22
Cost of Debt
Tax Rate	32.48
After-tax Cost of Debt	2.87%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.055
Total Debt	4,387.99
Total Equity	4,523.52
Total Capital	8,911.51
Debt Weighting	49.24
Equity Weighting	50.76
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	747.30	837.45	898.40	955.04	1,096.99	1,208.08	1,330.43	1,465.17	1,613.55	1,776.96
EBITDA	440.36	500.09	541.84	596.63	684.05	733.99	808.32	890.19	980.34	1,079.62
EBIT	186.08	226.28	241.70	285.34	325.67	334.37	368.23	405.53	446.59	491.82
Tax Rate	7.02%	31.74%	43.88%	4.67%	32.48%	23.96%	23.96%	23.96%	23.96%	23.96%
EBIAT	173.01	154.45	135.64	272.02	219.90	254.26	280.01	308.37	339.60	373.99
Depreciation	254.28	273.81	300.13	311.28	358.38	399.62	440.09	484.66	533.74	587.80
Accounts Receivable	-	-77.24	-34.24	-21.39	-52.73	-42.83	-52.22	-57.51	-63.33	-69.74
Inventories	-	1.68	1.14	1.06	2.65	2.07	2.28	2.51	2.77	3.05
Accounts Payable	-	44.43	26.25	-53.84	1.10	154.65	55.40	61.01	67.19	73.99
Capital Expenditure	-1,224.32	-1,352.70	-616.07	-1,797.80	-586.61	-1,535.83	-1,691.37	-1,862.66	-2,051.30	-2,259.04
UFCF	-797.02	-955.57	-187.14	-1,288.67	-57.32	-768.06	-965.81	-1,063.62	-1,171.34	-1,289.97
WACC
PV UFCF						-724.52	-859.41	-892.79	-927.46	-963.48
SUM PV UFCF										-4,367.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.01
Free cash flow (t + 1)	-1,315.76
Terminal Value	-32,812.09
Present Value of Terminal Value	-24,507.54

Intrinsic Value

Enterprise Value	-28,875.20
Net Debt	4,040.61
Equity Value	-32,915.81
Shares Outstanding	117.22
Equity Value Per Share	-280.80