Discounted Cash Flow (DCF) Analysis Unlevered

RioCan Real Estate Investment Trust (REI-UN.TO)

$20.27

+0.40 (+2.01%)
All numbers are in Millions, Currency in USD
Stock DCF: -4.59 | 20.27 | overvalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 1,147.841,326.331,143.661,175.061,213.851,237.591,261.791,286.471,311.641,337.29
Revenue (%)
EBITDA 699.54964.36131773.87422.83608.40620.30632.43644.80657.41
EBITDA (%)
EBIT 694.96959.98126.66769.85418.06603.83615.64627.68639.96652.48
EBIT (%)
Depreciation 4.574.384.344.024.774.564.654.744.844.93
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 74.7093.52238.4677.7686.23119.13121.46123.84126.26128.73
Total Cash (%)
Account Receivables 42.3290.99129.55297.54145.47146.48149.35152.27155.25158.28
Account Receivables (%)
Inventories 206.12108.96214.18217.04272.01212.32216.47220.71225.02229.42
Inventories (%)
Accounts Payable 18.6719.5611.3320.2088.6232.4533.0933.7334.3935.07
Accounts Payable (%)
Capital Expenditure -421.93-537.09-516.63-463.88-101.47-421.43-429.67-438.08-446.65-455.38
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 20.27
Beta 1.196
Diluted Shares Outstanding 317.28
Cost of Debt
Tax Rate 0.39
After-tax Cost of Debt 2.65%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.334
Total Debt 6,778.91
Total Equity 6,431.35
Total Capital 13,210.26
Debt Weighting 51.32
Equity Weighting 48.68
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 1,147.841,326.331,143.661,175.061,213.851,237.591,261.791,286.471,311.641,337.29
EBITDA 699.54964.36131773.87422.83608.40620.30632.43644.80657.41
EBIT 694.96959.98126.66769.85418.06603.83615.64627.68639.96652.48
Tax Rate -0.41%0.18%-19.63%-0.01%0.39%-3.90%-3.90%-3.90%-3.90%-3.90%
EBIAT 697.84958.29151.53769.93416.44627.37639.64652.15664.91677.91
Depreciation 4.574.384.344.024.774.564.654.744.844.93
Accounts Receivable --48.66-38.56-167.99152.07-1.01-2.87-2.92-2.98-3.04
Inventories -97.17-105.23-2.86-54.9659.69-4.15-4.23-4.32-4.40
Accounts Payable -0.88-8.238.8768.42-56.160.630.650.660.67
Capital Expenditure -421.93-537.09-516.63-463.88-101.47-421.43-429.67-438.08-446.65-455.38
UFCF 280.49474.97-512.78148.08485.27213.02208.24212.31216.47220.70
WACC
PV UFCF 201.15185.68178.77172.11165.70
SUM PV UFCF 903.42

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.90
Free cash flow (t + 1) 225.11
Terminal Value 5,772.18
Present Value of Terminal Value 4,333.71

Intrinsic Value

Enterprise Value 5,237.13
Net Debt 6,692.69
Equity Value -1,455.56
Shares Outstanding 317.28
Equity Value Per Share -4.59