Discounted Cash Flow (DCF) Analysis Unlevered

The RMR Group Inc. (RMR)

$30.24

-0.18 (-0.59%)
All numbers are in Millions, Currency in USD
Stock DCF: 33.70 | 30.24 | undervalue

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 404.98713.37589.51607.24832.501,038.321,295.021,615.192,014.512,512.55
Revenue (%)
EBITDA 156.15102.9241.3149.8249.55153.98192.05239.53298.75372.61
EBITDA (%)
EBIT 154.90101.9040.3448.8548.56152.12189.73236.64295.14368.11
EBIT (%)
Depreciation 1.251.020.970.970.991.862.322.893.604.49
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 256.85358.45369.66159.84189.09468.10583.83728.17908.191,132.72
Total Cash (%)
Account Receivables 28.8593.5282.6188.66108.82128.58160.37200.02249.47311.14
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable --16.9815.0316.7425.5031.8039.6649.4761.70
Accounts Payable (%)
Capital Expenditure -0.65-0.70-0.60-1.14-1.12-1.42-1.77-2.21-2.75-3.43
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 30.24
Beta 1.462
Diluted Shares Outstanding 31.35
Cost of Debt
Tax Rate 62.51
After-tax Cost of Debt 1.63%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.451
Total Debt 30.32
Total Equity 947.96
Total Capital 978.28
Debt Weighting 3.10
Equity Weighting 96.90
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 404.98713.37589.51607.24832.501,038.321,295.021,615.192,014.512,512.55
EBITDA 156.15102.9241.3149.8249.55153.98192.05239.53298.75372.61
EBIT 154.90101.9040.3448.8548.56152.12189.73236.64295.14368.11
Tax Rate 65.31%62.02%63.03%62.09%62.51%62.99%62.99%62.99%62.99%62.99%
EBIAT 53.7338.7014.9118.5218.2056.3070.2187.57109.22136.23
Depreciation 1.251.020.970.970.991.862.322.893.604.49
Accounts Receivable --64.6710.92-6.06-20.16-19.76-31.79-39.65-49.45-61.67
Inventories ----------
Accounts Payable ----1.961.728.756.307.869.8112.23
Capital Expenditure -0.65-0.70-0.60-1.14-1.12-1.42-1.77-2.21-2.75-3.43
UFCF 54.33-25.6626.2010.34-0.3745.7345.2856.4770.4387.84
WACC
PV UFCF 41.5037.3042.2247.7954.10
SUM PV UFCF 222.91

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.18
Free cash flow (t + 1) 89.60
Terminal Value 1,095.37
Present Value of Terminal Value 674.60

Intrinsic Value

Enterprise Value 897.52
Net Debt -158.77
Equity Value 1,056.29
Shares Outstanding 31.35
Equity Value Per Share 33.70