Discounted Cash Flow (DCF) Analysis Unlevered

Washington Prime Group Inc. (WPG)

$ 2.905
0.135 (+4.87%)

Operating Data

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 (%)
EBITDA 409.85422.80545.84517.63470.47433.43363.48252.03308.02304.73301.46298.24295.04
EBITDA (%)
EBIT 225.38223.86215.95232209.56174.4190.2825.02123.84122.51121.20119.90118.62
EBIT (%)
Depreciation 184.47198.93329.89285.63260.91259.02273.20227.01184.19182.22180.26178.34176.43
Depreciation (%)

Balance Sheet Data

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
Total Cash 25.86108.77116.2559.3552.0242.5441.4292.6249.8749.3348.8148.2847.77
Total Cash (%)
Account Receivables 61.1269.6291.6099.9790.3185.46137.76132.6172.5871.8071.0470.2869.52
Account Receivables (%)
Inventories -------------
Inventories (%)
Accounts Payable 151.01194.01365.60309.18265253.86260.90276.09189.31187.29185.28183.30181.34
Accounts Payable (%)
Capital Expenditure -93.29-80.29431.8222.65224.3639.2153.45-181.1020.1419.9319.7119.5019.29
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 2.905
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 73.21
Total Capital 4,396.34
Debt Weighting 98.33
Equity Weighting 1.67
Wacc

Build Up Free Cash

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
EBITDA 409.85422.80545.84517.63470.47433.43363.48252.03308.02304.73301.46298.24295.04
EBIT 225.38223.86215.95232209.56174.4190.2825.02123.84122.51121.20119.90118.62
Tax Rate 17.09%17.73%17.41%15.72%16.15%15.05%-5.37%16.41%13.77%13.77%13.77%13.77%13.77%
EBIAT 186.86184.17178.36195.54175.72148.1695.1320.91106.78105.64104.51103.39102.28
Depreciation 184.47198.93329.89285.63260.91259.02273.20227.01184.19182.22180.26178.34176.43
Accounts Receivable --8.49-21.99-8.369.654.85-52.305.1560.030.780.770.760.75
Inventories -------------
Accounts Payable -43171.59-56.43-44.18-11.147.0415.18-86.77-2.03-2-1.98-1.96
Capital Expenditure -93.29-80.29431.8222.65224.3639.2153.45-181.1020.1419.9319.7119.5019.29
UFCF 278.04337.321,089.68439.03626.46440.11376.5287.16284.37306.53303.25300.01296.79
WACC
PV UFCF 261.20269.85255.86242.59230.01
SUM PV UFCF 1,314.18

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.34
Free cash flow (t + 1) 308.67
Terminal Value 90,784.01
Present Value of Terminal Value 73,410

Intrinsic Value

Enterprise Value 74,724.17
Net Debt 4,230.51
Equity Value 70,493.66
Shares Outstanding 25.20
Equity Value Per Share 2,797.25