Discounted Cash Flow (DCF) Analysis Unlevered

Corporate Office Properties Trust (OFC)

$26.05

+0.52 (+2.04%)
All numbers are in Millions, Currency in USD
Stock DCF: 51.80 | 26.05 | 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 612.82578.11641.23609.37664.45679.93695.78712728.60745.58
Revenue (%)
EBITDA 281.75286.83399.29303.16138.22310.61317.85325.26332.84340.60
EBITDA (%)
EBIT 145.24147.77260.39163.13142.08187.69192.07196.55201.13205.82
EBIT (%)
Depreciation 136.50139.06138.90140.03-3.86122.92125.78128.72131.72134.79
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 12.268.0714.7318.3713.2614.5614.9015.2415.6015.96
Total Cash (%)
Account Receivables 123.40118.82140.40209.84231.90179.40183.58187.86192.24196.72
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 108.1492.86148.75142.72186.20147.34150.77154.29157.89161.57
Accounts Payable (%)
Capital Expenditure -22.88-24.22-24.66-32.76-28.48-29.14-29.82-30.52-31.23-31.96
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 26.05
Beta 0.992
Diluted Shares Outstanding 112.50
Cost of Debt
Tax Rate 2.33
After-tax Cost of Debt 2.77%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.569
Total Debt 2,301.65
Total Equity 2,930.57
Total Capital 5,232.22
Debt Weighting 43.99
Equity Weighting 56.01
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 612.82578.11641.23609.37664.45679.93695.78712728.60745.58
EBITDA 281.75286.83399.29303.16138.22310.61317.85325.26332.84340.60
EBIT 145.24147.77260.39163.13142.08187.69192.07196.55201.13205.82
Tax Rate -3.78%1.63%4.05%5.67%2.33%1.98%1.98%1.98%1.98%1.98%
EBIAT 150.73145.36249.84153.87138.78183.98188.26192.65197.14201.74
Depreciation 136.50139.06138.90140.03-3.86122.92125.78128.72131.72134.79
Accounts Receivable -4.58-21.59-69.44-22.0652.51-4.18-4.28-4.38-4.48
Inventories ----------
Accounts Payable --15.2855.89-6.0343.49-38.863.433.513.603.68
Capital Expenditure -22.88-24.22-24.66-32.76-28.48-29.14-29.82-30.52-31.23-31.96
UFCF 264.35249.50398.39185.68127.86291.40283.48290.09296.85303.77
WACC
PV UFCF 276.31254.88247.32239.98232.86
SUM PV UFCF 1,251.36

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.46
Free cash flow (t + 1) 309.84
Terminal Value 8,954.96
Present Value of Terminal Value 6,864.75

Intrinsic Value

Enterprise Value 8,116.12
Net Debt 2,288.38
Equity Value 5,827.73
Shares Outstanding 112.50
Equity Value Per Share 51.80