Discounted Cash Flow (DCF) Analysis Unlevered

Sotherly Hotels Inc. (SOHO)

$2.04

+0.04 (+2.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 4.19 | 2.04 | 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 178.17185.7971.50127.59166.08187.40211.47238.62269.27303.84
Revenue (%)
EBITDA 41.4243.07-5.96-31.3445.2815.2917.2519.4721.9724.79
EBITDA (%)
EBIT 20.5321.43-25.86-51.2526.63-13.96-15.75-17.77-20.05-22.63
EBIT (%)
Depreciation 20.8821.6419.9019.9118.6529.253337.2442.0247.42
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 33.7923.7425.30389.05386.99226.78255.91288.77325.85367.69
Total Cash (%)
Account Receivables 7.034.912.184.825.846.357.168.089.1210.29
Account Receivables (%)
Inventories --7.736.896.7512.6714.2916.1318.2020.54
Inventories (%)
Accounts Payable 16.2720.1935.6329.7038.6643.6249.2255.5462.6870.73
Accounts Payable (%)
Capital Expenditure -22.10-12.66-6.87-12.26-15.96-18.01-20.32-22.93-25.88-29.20
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 2.04
Beta 1.693
Diluted Shares Outstanding 14.31
Cost of Debt
Tax Rate 27.60
After-tax Cost of Debt 3.62%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.471
Total Debt -
Total Equity 29.20
Total Capital 29.20
Debt Weighting 0.00
Equity Weighting 100.00
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 178.17185.7971.50127.59166.08187.40211.47238.62269.27303.84
EBITDA 41.4243.07-5.96-31.3445.2815.2917.2519.4721.9724.79
EBIT 20.5321.43-25.86-51.2526.63-13.96-15.75-17.77-20.05-22.63
Tax Rate 179.20%-106.18%-1.63%-0.10%27.60%19.78%19.78%19.78%19.78%19.78%
EBIAT -16.2644.18-26.28-51.3019.28-11.20-12.64-14.26-16.09-18.15
Depreciation 20.8821.6419.9019.9118.6529.253337.2442.0247.42
Accounts Receivable -2.122.73-2.64-1.02-0.50-0.82-0.92-1.04-1.17
Inventories ---0.830.14-5.91-1.63-1.84-2.07-2.34
Accounts Payable -3.9215.44-5.938.964.965.606.327.138.05
Capital Expenditure -22.10-12.66-6.87-12.26-15.96-18.01-20.32-22.93-25.88-29.20
UFCF -17.4859.194.92-51.4030.05-1.413.203.614.084.60
WACC
PV UFCF -1.272.582.612.642.67
SUM PV UFCF 9.23

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.47
Free cash flow (t + 1) 4.69
Terminal Value 49.56
Present Value of Terminal Value 28.79

Intrinsic Value

Enterprise Value 38.03
Net Debt -21.92
Equity Value 59.94
Shares Outstanding 14.31
Equity Value Per Share 4.19