Discounted Cash Flow (DCF) Analysis Unlevered
The RMR Group Inc. (RMR)
$25.77
+1.10 (+4.46%)
All numbers are in Millions, Currency in USD
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 | 404.98 | 713.37 | 589.51 | 607.24 | 832.50 | 1,038.32 | 1,295.02 | 1,615.19 | 2,014.51 | 2,512.55 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 156.15 | 102.92 | 41.31 | 49.82 | 49.55 | 153.98 | 192.05 | 239.53 | 298.75 | 372.61 |
| EBITDA (%) | ||||||||||
| EBIT | 154.90 | 101.90 | 40.34 | 48.85 | 48.56 | 152.12 | 189.73 | 236.64 | 295.14 | 368.11 |
| EBIT (%) | ||||||||||
| Depreciation | 1.25 | 1.02 | 0.97 | 0.97 | 0.99 | 1.86 | 2.32 | 2.89 | 3.60 | 4.49 |
| 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 | 256.85 | 358.45 | 369.66 | 159.84 | 189.09 | 468.10 | 583.83 | 728.17 | 908.19 | 1,132.72 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 28.85 | 93.52 | 82.61 | 88.66 | 108.82 | 128.58 | 160.37 | 200.02 | 249.47 | 311.14 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | - | - | 16.98 | 15.03 | 16.74 | 25.50 | 31.80 | 39.66 | 49.47 | 61.70 |
| 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 | $ 25.77 |
|---|---|
| Beta | 1.489 |
| 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 | 10.410 |
| Total Debt | 30.32 |
| Total Equity | 807.84 |
| Total Capital | 838.16 |
| Debt Weighting | 3.62 |
| Equity Weighting | 96.38 |
| 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 | 404.98 | 713.37 | 589.51 | 607.24 | 832.50 | 1,038.32 | 1,295.02 | 1,615.19 | 2,014.51 | 2,512.55 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 156.15 | 102.92 | 41.31 | 49.82 | 49.55 | 153.98 | 192.05 | 239.53 | 298.75 | 372.61 |
| EBIT | 154.90 | 101.90 | 40.34 | 48.85 | 48.56 | 152.12 | 189.73 | 236.64 | 295.14 | 368.11 |
| Tax Rate | 65.31% | 62.02% | 63.03% | 62.09% | 62.51% | 62.99% | 62.99% | 62.99% | 62.99% | 62.99% |
| EBIAT | 53.73 | 38.70 | 14.91 | 18.52 | 18.20 | 56.30 | 70.21 | 87.57 | 109.22 | 136.23 |
| Depreciation | 1.25 | 1.02 | 0.97 | 0.97 | 0.99 | 1.86 | 2.32 | 2.89 | 3.60 | 4.49 |
| Accounts Receivable | - | -64.67 | 10.92 | -6.06 | -20.16 | -19.76 | -31.79 | -39.65 | -49.45 | -61.67 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | - | - | -1.96 | 1.72 | 8.75 | 6.30 | 7.86 | 9.81 | 12.23 |
| 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 | -25.66 | 26.20 | 10.34 | -0.37 | 45.73 | 45.28 | 56.47 | 70.43 | 87.84 |
| WACC | ||||||||||
| PV UFCF | 41.54 | 37.36 | 42.32 | 47.95 | 54.32 | |||||
| SUM PV UFCF | 223.49 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 10.09 |
| Free cash flow (t + 1) | 89.60 |
| Terminal Value | 1,107.56 |
| Present Value of Terminal Value | 684.90 |
Intrinsic Value
| Enterprise Value | 908.39 |
|---|---|
| Net Debt | -158.77 |
| Equity Value | 1,067.16 |
| Shares Outstanding | 31.35 |
| Equity Value Per Share | 34.04 |