DCF Tool

ABR

Arbor Realty Trust Inc. – Other Financial Vehicles
Arbor Realty Trust, Inc. is a nationwide real estate investment trust and direct lender, providing loan origination and servicing for multifamily, seniors housing, healthcare and other diverse commercial real estate assets. Headquartered in New York, Arbor manages a multibillion- dollar servicing portfolio, specializing in government-sponsored enterprise products. Arbor is a Fannie Mae DUSĀ®lender and Freddie Mac OptigoSeller/Servicer. Arbor's product platform also includes CMBS, bridge, mezzanine and preferred equitylending. Rated by Standard and Poor's and Fitch Ratings, Arbor is committed to building on its reputation for service, quality and customized solutions with an unparalleled dedication to providing our clients excellence over the entire life of a loan.
Analysis Results
Intrinsic Value $1,018.31
Latest Price $16.30
Relative Value 98% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 71.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 0.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 71.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 1.83 1.68
2023 3.13 2.64
2024 5.38 4.16
2025 9.24 6.55
2026 15.9 10.3
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 231 billion. This corresponds to a present value of 138 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 25.3 billion. Adding in the terminal value gives a total present value of 163 billion.

There are presently 160.0 million outstanding shares, so the intrinsic value per share is 1018.31.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 13,704,039,000
Current Cash 0
Current Liabilities 12,179,912,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,524,127,000
Change in NCWC 720,193,000
EBIT 423,773,000
Tax Provision 46,285,000
Depreciation and Amortization 7,215,000
Capital Expenditure 0
Unlevered Free Cash Flow 1,104,930,815
Current Assets 6,720,288,000
Current Cash 0
Current Liabilities 5,916,354,000
Current Debt 0
Non-Cash Working Capital (NCWC) 803,934,000
Change in NCWC 67,763,000
EBIT 240,471,000
Tax Provision 40,393,000
Depreciation and Amortization 7,640,000
Capital Expenditure -131,000
Unlevered Free Cash Flow 274,680,454
Current Assets 5,450,357,000
Current Cash 0
Current Liabilities 4,714,186,000
Current Debt 0
Non-Cash Working Capital (NCWC) 736,171,000
Change in NCWC 210,180,000
EBIT 178,713,000
Tax Provision 15,036,000
Depreciation and Amortization 7,510,000
Capital Expenditure -475,000
Unlevered Free Cash Flow 380,146,796
Current Assets 3,919,522,000
Current Cash 0
Current Liabilities 3,393,531,000
Current Debt 0
Non-Cash Working Capital (NCWC) 525,991,000
Change in NCWC 147,587,000
EBIT 149,612,000
Tax Provision 9,731,000
Depreciation and Amortization 7,453,000
Capital Expenditure -367,000
Unlevered Free Cash Flow 295,057,874
Current Assets 3,009,469,000
Current Cash 0
Current Liabilities 2,631,065,000
Current Debt 0
Non-Cash Working Capital (NCWC) 378,404,000
Change in NCWC -31,033,129
EBIT 114,068,000
Tax Provision 13,359,000
Depreciation and Amortization 7,385,000
Capital Expenditure -672,000
Unlevered Free Cash Flow 76,003,288
Current Assets 2,514,613,280
Current Cash 0
Current Liabilities 2,105,176,151
Current Debt 0
Non-Cash Working Capital (NCWC) 409,437,129
Change in NCWC -28,463,346
EBIT 73,137,108
Tax Provision 825,000
Depreciation and Amortization 5,021,900
Capital Expenditure -588,089
Unlevered Free Cash Flow 48,154,452
Current Assets 1,649,147,323
Current Cash 0
Current Liabilities 1,211,246,848
Current Debt 0
Non-Cash Working Capital (NCWC) 437,900,475
Change in NCWC 221,105,763
EBIT 31,102,558
Tax Provision 0
Depreciation and Amortization 5,436,330
Capital Expenditure -2,223,664
Unlevered Free Cash Flow 255,420,987
Current Assets 1,512,429,619
Current Cash 0
Current Liabilities 1,295,634,907
Current Debt 0
Non-Cash Working Capital (NCWC) 216,794,712
Change in NCWC -44,722,467
EBIT 5,901,261
Tax Provision 0
Depreciation and Amortization 7,371,737
Capital Expenditure -4,714,838
Unlevered Free Cash Flow -36,164,307
Current Assets 1,640,550,864
Current Cash 0
Current Liabilities 1,379,033,685
Current Debt 0
Non-Cash Working Capital (NCWC) 261,517,179
Change in NCWC 238,904,199
EBIT 22,298,737
Tax Provision 0
Depreciation and Amortization 7,250,601
Capital Expenditure -8,004,139
Unlevered Free Cash Flow 260,449,398
Current Assets 1,420,467,701
Current Cash 0
Current Liabilities 1,397,854,721
Current Debt 0
Non-Cash Working Capital (NCWC) 22,612,980
Change in NCWC 132,071,287
EBIT 15,586,859
Tax Provision -801,558
Depreciation and Amortization 5,904,089
Capital Expenditure -4,206,576
Unlevered Free Cash Flow 149,355,659

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