Discounted Cash Flow (DCF) Analysis Unlevered

Office Properties Income Trust (OPI)

$14.22

+0.20 (+1.43%)
All numbers are in Millions, Currency in USD
Stock DCF: 350.84 | 14.22 | 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 316.53426.56678.40587.92576.48689.64825.02986.961,180.701,412.46
Revenue (%)
EBITDA 186.20229.16453.37366.38341.55415.08496.56594.03710.64850.13
EBITDA (%)
EBIT 77.6068.10165.99115.36104.46141.64169.44202.70242.49290.09
EBIT (%)
Depreciation 108.60161.06287.38251.02237.09273.45327.12391.33468.15560.05
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 16.5735.3593.7442.0483.0367.4480.6896.51115.46138.12
Total Cash (%)
Account Receivables 61.4372.0583.56101.77112.89117.94141.09168.78201.91241.55
Account Receivables (%)
Inventories ---75.1826.606071.7885.87102.73122.89
Inventories (%)
Accounts Payable 89.44145.54125.05116.48142.61172.90206.84247.45296.02354.13
Accounts Payable (%)
Capital Expenditure ----------
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 14.22
Beta 1.121
Diluted Shares Outstanding 48.20
Cost of Debt
Tax Rate -50.70
After-tax Cost of Debt 4.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.030
Total Debt 2,594.98
Total Equity 685.33
Total Capital 3,280.32
Debt Weighting 79.11
Equity Weighting 20.89
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 316.53426.56678.40587.92576.48689.64825.02986.961,180.701,412.46
EBITDA 186.20229.16453.37366.38341.55415.08496.56594.03710.64850.13
EBIT 77.6068.10165.99115.36104.46141.64169.44202.70242.49290.09
Tax Rate 226.56%13.23%6.29%19.03%-50.70%42.88%42.88%42.88%42.88%42.88%
EBIAT -98.2059.09155.5593.40157.4280.9096.78115.78138.50165.69
Depreciation 108.60161.06287.38251.02237.09273.45327.12391.33468.15560.05
Accounts Receivable --10.62-11.51-18.21-11.12-5.05-23.15-27.69-33.13-39.63
Inventories ----48.58-33.40-11.78-14.09-16.86-20.16
Accounts Payable -56.10-20.49-8.5726.1330.2933.9440.6048.5758.11
Capital Expenditure ----------
UFCF -----346.19422.91505.93605.24724.05
WACC
PV UFCF 328.73381.34433.19492.10559.01
SUM PV UFCF 2,194.37

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.31
Free cash flow (t + 1) 738.53
Terminal Value 22,311.98
Present Value of Terminal Value 17,226.22

Intrinsic Value

Enterprise Value 19,420.59
Net Debt 2,511.96
Equity Value 16,908.63
Shares Outstanding 48.20
Equity Value Per Share 350.84