Discounted Cash Flow (DCF) Analysis Unlevered

The Necessity Retail REIT, Inc. (RTL)

$6.83

+0.08 (+1.19%)
All numbers are in Millions, Currency in USD
Stock DCF: 37.85 | 6.83 | 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 269.82291.21299.74305.22335.16354373.91394.93417.14440.59
Revenue (%)
EBITDA 159.82151197.96175.73169.81202.04213.40225.40238.07251.46
EBITDA (%)
EBIT 11.3527.5982.1446.6041.6148.6951.4254.3257.3760.60
EBIT (%)
Depreciation 148.48123.40115.82129.13128.20153.35161.98171.08180.70190.86
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 107.6791.4581.90102.86214.85139.08146.90155.16163.88173.09
Total Cash (%)
Account Receivables -37.9146.9866.5870.7963.3966.9570.7274.6978.89
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 27.3528.3826.8225.2132.9133.2135.0837.0539.1441.34
Accounts Payable (%)
Capital Expenditure -8.92-10.43-13.65-9.20-13.41-13.06-13.80-14.58-15.40-16.26
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 6.83
Beta 1.386
Diluted Shares Outstanding 108.40
Cost of Debt
Tax Rate 0.02
After-tax Cost of Debt 3.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.048
Total Debt 2,053.21
Total Equity 740.40
Total Capital 2,793.61
Debt Weighting 73.50
Equity Weighting 26.50
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 269.82291.21299.74305.22335.16354373.91394.93417.14440.59
EBITDA 159.82151197.96175.73169.81202.04213.40225.40238.07251.46
EBIT 11.3527.5982.1446.6041.6148.6951.4254.3257.3760.60
Tax Rate 0.18%0.17%0.38%0.14%0.02%0.18%0.18%0.18%0.18%0.18%
EBIAT 11.3227.5581.8346.5441.6048.6051.3354.2257.2760.49
Depreciation 148.48123.40115.82129.13128.20153.35161.98171.08180.70190.86
Accounts Receivable ---9.07-19.60-4.217.40-3.56-3.76-3.98-4.20
Inventories ----------
Accounts Payable -1.03-1.57-1.617.700.301.871.972.082.20
Capital Expenditure -8.92-10.43-13.65-9.20-13.41-13.06-13.80-14.58-15.40-16.26
UFCF 150.89141.55173.36145.26159.88196.59197.81208.94220.68233.09
WACC
PV UFCF 186.19177.42177.48177.53177.59
SUM PV UFCF 896.21

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.59
Free cash flow (t + 1) 237.75
Terminal Value 6,622.66
Present Value of Terminal Value 5,045.67

Intrinsic Value

Enterprise Value 5,941.87
Net Debt 1,838.36
Equity Value 4,103.51
Shares Outstanding 108.40
Equity Value Per Share 37.85