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
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 | 612.82 | 578.11 | 641.23 | 609.37 | 664.45 | 679.93 | 695.78 | 712 | 728.60 | 745.58 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 281.75 | 286.83 | 399.29 | 303.16 | 138.22 | 310.61 | 317.85 | 325.26 | 332.84 | 340.60 |
| EBITDA (%) | ||||||||||
| EBIT | 145.24 | 147.77 | 260.39 | 163.13 | 142.08 | 187.69 | 192.07 | 196.55 | 201.13 | 205.82 |
| EBIT (%) | ||||||||||
| Depreciation | 136.50 | 139.06 | 138.90 | 140.03 | -3.86 | 122.92 | 125.78 | 128.72 | 131.72 | 134.79 |
| 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 | 12.26 | 8.07 | 14.73 | 18.37 | 13.26 | 14.56 | 14.90 | 15.24 | 15.60 | 15.96 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 123.40 | 118.82 | 140.40 | 209.84 | 231.90 | 179.40 | 183.58 | 187.86 | 192.24 | 196.72 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 108.14 | 92.86 | 148.75 | 142.72 | 186.20 | 147.34 | 150.77 | 154.29 | 157.89 | 161.57 |
| 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 | 612.82 | 578.11 | 641.23 | 609.37 | 664.45 | 679.93 | 695.78 | 712 | 728.60 | 745.58 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 281.75 | 286.83 | 399.29 | 303.16 | 138.22 | 310.61 | 317.85 | 325.26 | 332.84 | 340.60 |
| EBIT | 145.24 | 147.77 | 260.39 | 163.13 | 142.08 | 187.69 | 192.07 | 196.55 | 201.13 | 205.82 |
| Tax Rate | -3.78% | 1.63% | 4.05% | 5.67% | 2.33% | 1.98% | 1.98% | 1.98% | 1.98% | 1.98% |
| EBIAT | 150.73 | 145.36 | 249.84 | 153.87 | 138.78 | 183.98 | 188.26 | 192.65 | 197.14 | 201.74 |
| Depreciation | 136.50 | 139.06 | 138.90 | 140.03 | -3.86 | 122.92 | 125.78 | 128.72 | 131.72 | 134.79 |
| Accounts Receivable | - | 4.58 | -21.59 | -69.44 | -22.06 | 52.51 | -4.18 | -4.28 | -4.38 | -4.48 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | -15.28 | 55.89 | -6.03 | 43.49 | -38.86 | 3.43 | 3.51 | 3.60 | 3.68 |
| Capital Expenditure | -22.88 | -24.22 | -24.66 | -32.76 | -28.48 | -29.14 | -29.82 | -30.52 | -31.23 | -31.96 |
| UFCF | 264.35 | 249.50 | 398.39 | 185.68 | 127.86 | 291.40 | 283.48 | 290.09 | 296.85 | 303.77 |
| WACC | ||||||||||
| PV UFCF | 276.31 | 254.88 | 247.32 | 239.98 | 232.86 | |||||
| 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 |