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Agree Realty Corp. – Other Financial Vehicles
Agree Realty Corporation is a publicly traded real estate investment trust primarily engaged in the acquisition and development of properties net leased to industry-leading retail tenants. As of December 31, 2020, the Company owned and operated a portfolio of 1,129 properties, located in 46 states and containing approximately 22.7 million square feet of gross leasable area.
Analysis Results
Intrinsic Value $535.87
Latest Price $70.70
Relative Value 87% 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 47.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 47.7%, 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 0.371 0.359
2023 0.548 0.512
2024 0.809 0.732
2025 1.2 1.05
2026 1.77 1.49
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 53.0 billion. This corresponds to a present value of 43.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.14 billion. Adding in the terminal value gives a total present value of 47.5 billion.

There are presently 88.6 million outstanding shares, so the intrinsic value per share is 535.87.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 96,694,000
Current Cash 43,252,000
Current Liabilities 86,886,000
Current Debt 0
Non-Cash Working Capital (NCWC) -33,444,000
Change in NCWC 34,683,000
EBIT 177,077,000
Tax Provision 2,401,000
Depreciation and Amortization 95,729,000
Capital Expenditure -41,464,000
Unlevered Free Cash Flow 262,631,225
Current Assets 43,945,000
Current Cash 6,137,000
Current Liabilities 105,935,000
Current Debt 0
Non-Cash Working Capital (NCWC) -68,127,000
Change in NCWC -20,934,000
EBIT 129,265,000
Tax Provision 1,086,000
Depreciation and Amortization 66,758,000
Capital Expenditure -19,617,000
Unlevered Free Cash Flow 153,963,459
Current Assets 42,411,000
Current Cash 15,603,000
Current Liabilities 74,001,000
Current Debt 0
Non-Cash Working Capital (NCWC) -47,193,000
Change in NCWC -30,804,000
EBIT 102,698,000
Tax Provision 538,000
Depreciation and Amortization 45,703,000
Capital Expenditure -24,428,000
Unlevered Free Cash Flow 92,489,407
Current Assets 79,167,000
Current Cash 53,955,000
Current Liabilities 41,601,000
Current Debt 0
Non-Cash Working Capital (NCWC) -16,389,000
Change in NCWC -1,576,000
EBIT 75,321,000
Tax Provision 516,000
Depreciation and Amortization 43,698,000
Capital Expenditure -21,481,000
Unlevered Free Cash Flow 95,306,703
Current Assets 69,050,000
Current Cash 50,807,000
Current Liabilities 33,056,000
Current Debt 0
Non-Cash Working Capital (NCWC) -14,813,000
Change in NCWC -4,521,000
EBIT 62,387,000
Tax Provision 0
Depreciation and Amortization 31,752,000
Capital Expenditure -43,302,000
Unlevered Free Cash Flow 46,316,000
Current Assets 47,891,000
Current Cash 33,395,000
Current Liabilities 24,788,000
Current Debt 0
Non-Cash Working Capital (NCWC) -10,292,000
Change in NCWC 930,303
EBIT 51,509,000
Tax Provision 0
Depreciation and Amortization 23,407,000
Capital Expenditure -27,919,000
Unlevered Free Cash Flow 47,927,303
Current Assets 10,129,915
Current Cash 2,711,588
Current Liabilities 18,640,630
Current Debt 0
Non-Cash Working Capital (NCWC) -11,222,303
Change in NCWC -651,789
EBIT 40,112,683
Tax Provision 0
Depreciation and Amortization 16,485,874
Capital Expenditure -6,970,271
Unlevered Free Cash Flow 48,976,497
Current Assets 9,907,193
Current Cash 5,399,458
Current Liabilities 15,078,249
Current Debt 0
Non-Cash Working Capital (NCWC) -10,570,514
Change in NCWC -2,410,055
EBIT 30,924,985
Tax Provision 0
Depreciation and Amortization 12,053,587
Capital Expenditure -16,526,566
Unlevered Free Cash Flow 24,041,951
Current Assets 17,799,649
Current Cash 14,536,881
Current Liabilities 11,423,227
Current Debt 0
Non-Cash Working Capital (NCWC) -8,160,459
Change in NCWC 196,037
EBIT 25,717,991
Tax Provision 0
Depreciation and Amortization 9,479,958
Capital Expenditure -14,619,386
Unlevered Free Cash Flow 20,774,600
Current Assets 3,430,082
Current Cash 1,270,027
Current Liabilities 10,516,551
Current Debt 0
Non-Cash Working Capital (NCWC) -8,356,496
Change in NCWC 2,558,545
EBIT 21,640,772
Tax Provision 0
Depreciation and Amortization 7,504,811
Capital Expenditure -84,516,078
Unlevered Free Cash Flow -52,811,950

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