Discounted Cash Flow (DCF) Analysis Levered

Washington Prime Group Inc. (WPG)

$ 2.9091
0.1391 (+5.02%)

Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 626.29661.13921.66843.48758.12723.31661.48524.42518.80513.25507.76502.32496.95
Revenue (%)
Operating Cash Flow 336.43277.64310.76289.80327.51287.25209.3178.65190.23188.20186.18184.19182.22
Operating Cash Flow (%)
Capital Expenditure -93.29-80.29431.8222.65224.3639.2153.45-181.1020.1419.9319.7119.5019.29
Capital Expenditure (%)
Free Cash Flow 243.14197.35742.59312.45551.87326.46262.75-102.45210.38208.12205.90203.69201.51

Weighted Average Cost Of Capital

Share price $ 2.9,091
Beta 1.447
Diluted Shares Outstanding 25.20
Cost of Debt
Tax Rate 16.41
After-tax Cost of Debt 4.18%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.981
Total Debt 4,323.13
Total Equity 73.31
Total Capital 4,396.44
Debt Weighting 98.33
Equity Weighting 1.67
Wacc

Build Up Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 626.29661.13921.66843.48758.12723.31661.48524.42518.80513.25507.76502.32496.95
Operating Cash Flow 336.43277.64310.76289.80327.51287.25209.3178.65190.23188.20186.18184.19182.22
Capital Expenditure -93.29-80.29431.8222.65224.3639.2153.45-181.1020.1419.9319.7119.5019.29
Free Cash Flow 243.14197.35742.59312.45551.87326.46262.75-102.45210.38208.12205.90203.69201.51
WACC
PV LFCF 201.63191.17181.26171.86162.95
SUM PV LFCF 908.86

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.34
Free cash flow (t + 1) 209.57
Terminal Value 61,638.98
Present Value of Terminal Value 49,842.67

Intrinsic Value

Enterprise Value 50,751.53
Net Debt 4,230.51
Equity Value 46,521.02
Shares Outstanding 25.20
Equity Value Per Share 1,846.00