Discounted Cash Flow (DCF) Analysis Unlevered

Washington Real Estate Investment T... (WRE)

$16.77

-0.45 (-2.61%)
All numbers are in Millions, Currency in USD
Stock DCF: 44.93 | 16.77 | 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 325.08336.89309.18294.12169.15147.18128.07111.4396.9684.37
Revenue (%)
EBITDA 179.17198578.4625.01146.01116.51101.3888.2176.7566.79
EBITDA (%)
EBIT 67.1276.77437.28-95.0250.4553.6946.7240.6535.3730.77
EBIT (%)
Depreciation 112.06121.23141.18120.0395.5662.8254.6647.5641.3936.01
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 9.856.0212.947.70233.6044.0738.3533.3729.0325.26
Total Cash (%)
Account Receivables 69.7773.8665.2658.2615.0727.4423.8720.7718.0715.73
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 61.5759.5771.1458.7740.5830.5026.5423.0920.0917.48
Accounts Payable (%)
Capital Expenditure -192.49-37.9861.53-49.59-28.52-24.82-21.59-18.79-16.35-14.23
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 16.77
Beta 0.891
Diluted Shares Outstanding 82.35
Cost of Debt
Tax Rate 130.83
After-tax Cost of Debt -2.11%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.029
Total Debt 496.95
Total Equity 1,380.98
Total Capital 1,877.92
Debt Weighting 26.46
Equity Weighting 73.54
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 325.08336.89309.18294.12169.15147.18128.07111.4396.9684.37
EBITDA 179.17198578.4625.01146.01116.51101.3888.2176.7566.79
EBIT 67.1276.77437.28-95.0250.4553.6946.7240.6535.3730.77
Tax Rate -0.72%0.00%-1,216.59%-271.62%130.83%-271.62%-271.62%-271.62%-271.62%-271.62%
EBIAT 67.6076.775,757.25-353.10-15.55199.52173.60151.05131.44114.37
Depreciation 112.06121.23141.18120.0395.5662.8254.6647.5641.3936.01
Accounts Receivable --4.098.60743.19-12.373.563.102.702.35
Inventories ----------
Accounts Payable --211.57-12.36-18.19-10.09-3.96-3.45-3-2.61
Capital Expenditure -192.49-37.9861.53-49.59-28.52-24.82-21.59-18.79-16.35-14.23
UFCF -12.83153.935,980.13-288.0376.49215.06206.27179.48156.17135.89
WACC
PV UFCF 204.14185.86153.50126.78104.72
SUM PV UFCF 775

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.35
Free cash flow (t + 1) 138.61
Terminal Value 4,137.50
Present Value of Terminal Value 3,188.35

Intrinsic Value

Enterprise Value 3,963.35
Net Debt 263.35
Equity Value 3,700
Shares Outstanding 82.35
Equity Value Per Share 44.93