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Discounted Cash Flow (DCF) Analysis Unlevered


Equity Residential of Beneficial Interest

Equity Residential of Beneficial Interest (EQR)

Real Estate

Operating Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 2,387.702,614.772,744.992,425.752,471.352,578.362,625.032,672.542,720.912,770.162,820.30
Revenue (%)
EBITDA 3,432.081,848.912,084.825,485.101,735.381,861.832,883.072,935.252,988.383,042.473,097.54
EBITDA (%)
EBIT 2,418.741,090.101,315.674,776.05987.801,071.822,053.562,090.732,128.572,167.102,206.32
EBIT (%)
Depreciation 1,013.34758.81769.15709.05747.58790.01829.51844.52859.81875.37891.22
Depreciation (%)

Balance Sheet Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Total Cash --152.35345.18245.65116.28224.70228.77232.91237.13241.42
Total Cash (%)
Account Receivables -----------
Account Receivables (%)
Inventories -----------
Inventories (%)
Accounts Payable 362.21342.27396.38339.85307.68309.15354.90361.33367.87374.53381.30
Accounts Payable (%)
Capital Expenditure 3,925.86-668.86-726.605,822.52-588.68-370.251,374.731,399.611,424.941,450.731,476.99
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 81.71
Diluted Shares Outstanding 368.05
Cost of Debt
Tax Rate 0.13
After-tax Cost of Debt 0.04
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.32
Total Debt 7,843.00
Total Equity 30,073.53
Total Capital 37,916.53
Debt Weighting 20.68
Equity Weighting 79.32
Wacc

Build Up Free Cash

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 2,387.702,614.772,744.992,425.752,471.352,578.362,625.032,672.542,720.912,770.162,820.30
EBITDA 3,432.081,848.912,084.825,485.101,735.381,861.832,883.072,935.252,988.383,042.473,097.54
EBIT 2,418.741,090.101,315.674,776.05987.801,071.822,053.562,090.732,128.572,167.102,206.32
Tax Rate 0.06%0.22%0.11%0.04%0.08%0.13%0.11%0.11%0.11%0.11%0.11%
EBIAT 2,417.201,087.701,314.294,774.26987.021,070.392,051.372,088.502,126.302,164.792,203.97
Depreciation 1,013.34758.81769.15709.05747.58790.01829.51844.52859.81875.37891.22
Accounts Receivable -----------
Inventories -----------
Accounts Payable --19.9454.10-56.53-32.161.4645.766.426.546.666.78
Capital Expenditure -4,594.7257.74-6,549.126,411.19-218.42-1,744.98-24.88-25.33-25.79-26.26
UFCF 3,430.546,421.282,195.28-1,122.348,113.631,643.441,181.662,914.562,967.323,021.033,075.71
WACC
PV UFCF 1,106.012,553.322,433.112,318.562,209.41
SUM PV UFCF 23,848.99

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.84
Free cash flow (t + 1) 3,198.74
Terminal Value 112,631.53
Present Value of Terminal Value 80,907.83

Intrinsic Value

Enterprise Value 104,756.83
Net Debt 7,726.72
Equity Value 97,030.11
Shares Outstanding 368.05
Equity Value Per Share 263.63