Discounted Cash Flow (DCF) Analysis Unlevered

Corporate Office Properties Trust (OFC)

$23.09

-0.39 (-1.66%)
All numbers are in Millions, Currency in USD
Stock DCF: 54.19 | 23.09 | 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 281.75286.83399.29303.16289.75341.62349.59357.74366.07374.61
EBITDA (%)
EBIT 145.24147.77260.39163.13139.10187.08191.45195.91200.47205.15
EBIT (%)
Depreciation 136.50139.06138.90140.03150.64154.54158.14161.83165.60169.46
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 -22.88-24.22-24.66-32.76-30.03-29.46-30.15-30.85-31.57-32.30
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 23.09
Beta 0.953
Diluted Shares Outstanding 112.08
Cost of Debt
Tax Rate 2.33
After-tax Cost of Debt 2.65%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.463
Total Debt 2,301.65
Total Equity 2,587.83
Total Capital 4,889.48
Debt Weighting 47.07
Equity Weighting 52.93
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 281.75286.83399.29303.16289.75341.62349.59357.74366.07374.61
EBIT 145.24147.77260.39163.13139.10187.08191.45195.91200.47205.15
Tax Rate -3.78%1.63%4.05%5.67%2.33%1.98%1.98%1.98%1.98%1.98%
EBIAT 150.73145.36249.84153.87135.87183.38187.65192.03196.50201.08
Depreciation 136.50139.06138.90140.03150.64154.54158.14161.83165.60169.46
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 -22.88-24.22-24.66-32.76-30.03-29.46-30.15-30.85-31.57-32.30
UFCF 264.35249.50398.39185.68277.91322.10314.90322.24329.75337.44
WACC
PV UFCF 304.65281.69272.64263.87255.39
SUM PV UFCF 1,378.24

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.73
Free cash flow (t + 1) 344.19
Terminal Value 9,227.53
Present Value of Terminal Value 6,983.84

Intrinsic Value

Enterprise Value 8,362.08
Net Debt 2,288.38
Equity Value 6,073.69
Shares Outstanding 112.08
Equity Value Per Share 54.19