Discounted Cash Flow (DCF) Analysis Unlevered

Office Properties Income Trust (OPI)

$2.385

-0.09 (-3.44%)
All numbers are in Millions, Currency in USD
Stock DCF: 64.59 | 2.385 | undervalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 678.40587.92576.48554.27533.55503.04474.28447.15421.58397.48
Revenue (%)
EBITDA 417.76364.29346.59334.14312.37304.33286.93270.52255.05240.47
EBITDA (%)
EBIT 130.38113.27109.49117.47112.10100.2994.5589.1584.0579.24
EBIT (%)
Depreciation 287.38251.02237.09216.67200.27204.04192.37181.37171161.22
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 93.7442.0483.0312.2512.3240.1337.8435.6733.6331.71
Total Cash (%)
Account Receivables 83.56101.77112.89105.64133.2693.8188.4583.3978.6274.12
Account Receivables (%)
Inventories 70.8875.1826.602.5237.3135.5133.4831.5629.7628.06
Inventories (%)
Accounts Payable 125.05116.48142.61140.15140.17115.24108.65102.4396.5891.05
Accounts Payable (%)
Capital Expenditure -62.68-81.76-100.14-204.10-229-120.99-114.07-107.55-101.40-95.60
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 2.385
Beta 1.184
Diluted Shares Outstanding 48.39
Cost of Debt
Tax Rate -48.80
After-tax Cost of Debt 4.28%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.794
Total Debt 2,584.27
Total Equity 115.41
Total Capital 2,699.68
Debt Weighting 95.73
Equity Weighting 4.27
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 678.40587.92576.48554.27533.55503.04474.28447.15421.58397.48
EBITDA 417.76364.29346.59334.14312.37304.33286.93270.52255.05240.47
EBIT 130.38113.27109.49117.47112.10100.2994.5589.1584.0579.24
Tax Rate 6.29%19.03%-4.62%-11.59%-48.80%-7.94%-7.94%-7.94%-7.94%-7.94%
EBIAT 122.1891.71114.56131.09166.81108.25102.0696.2290.7285.53
Depreciation 287.38251.02237.09216.67200.27204.04192.37181.37171161.22
Accounts Receivable --18.21-11.127.25-27.6339.455.365.064.774.50
Inventories --4.3048.5824.08-34.791.802.031.911.811.70
Accounts Payable --8.5726.13-2.460.02-24.93-6.59-6.21-5.86-5.52
Capital Expenditure -62.68-81.76-100.14-204.10-229-120.99-114.07-107.55-101.40-95.60
UFCF 346.88229.89315.10172.5275.67207.62181.17170.81161.04151.83
WACC
PV UFCF 198.64165.84149.59134.94121.72
SUM PV UFCF 770.72

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.52
Free cash flow (t + 1) 154.87
Terminal Value 6,145.46
Present Value of Terminal Value 4,926.71

Intrinsic Value

Enterprise Value 5,697.44
Net Debt 2,571.96
Equity Value 3,125.48
Shares Outstanding 48.39
Equity Value Per Share 64.59