DCF Tool

APLE

Apple Hospitality REIT Inc – Other Financial Vehicles
apple hospitality reit, inc. (nyse: aple) is a publicly traded real estate investment trust (â“reitâ”) that owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the united states. apple hospitality's portfolio consists of 235 hotels with more than 30,000 guest rooms located in 87 markets throughout 34 states. concentrated with industry-leading brands, the company's portfolio consists of 104 marriott-branded hotels, 126 hilton-branded hotels, three hyatt-branded hotels and two independent hotels.
Analysis Results
Intrinsic Value $38.56
Latest Price $15.43
Relative Value 60% undervalued
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Cash Flow (Millions)
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 4.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.5%, 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 (million) Present value (million)
2023 344 324
2024 359 319
2025 376 315
2026 393 310
2027 410 306
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 10300 million. This corresponds to a present value of 7250 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1570 million. Adding in the terminal value gives a total present value of 8820 million.

There are presently 229.0 million outstanding shares, so the intrinsic value per share is 38.56.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 47,408,000
Current Cash 4,077,000
Current Liabilities 228,070,000
Current Debt 112,006,000
Non-Cash Working Capital (NCWC) -72,733,000
Change in NCWC -20,113,000
EBIT 230,868,000
Tax Provision 1,940,000
Depreciation and Amortization 181,697,000
Capital Expenditure -59,376,000
Unlevered Free Cash Flow 330,023,876
Current Assets 43,334,000
Current Cash 3,282,000
Current Liabilities 204,448,000
Current Debt 111,776,000
Non-Cash Working Capital (NCWC) -52,620,000
Change in NCWC 17,787,000
EBIT 94,202,000
Tax Provision 468,000
Depreciation and Amortization 184,471,000
Capital Expenditure -18,312,000
Unlevered Free Cash Flow 275,863,250
Current Assets 33,009,000
Current Cash 5,556,000
Current Liabilities 97,860,000
Current Debt 0
Non-Cash Working Capital (NCWC) -70,407,000
Change in NCWC 4,938,000
EBIT -107,797,000
Tax Provision 332,000
Depreciation and Amortization 199,786,000
Capital Expenditure -48,559,000
Unlevered Free Cash Flow 48,368,000
Current Assets 39,019,000
Current Cash 0
Current Liabilities 114,364,000
Current Debt 0
Non-Cash Working Capital (NCWC) -75,345,000
Change in NCWC 2,984,000
EBIT 235,233,000
Tax Provision 679,000
Depreciation and Amortization 193,240,000
Capital Expenditure -74,896,000
Unlevered Free Cash Flow 355,635,583
Current Assets 29,091,000
Current Cash 0
Current Liabilities 107,420,000
Current Debt 0
Non-Cash Working Capital (NCWC) -78,329,000
Change in NCWC -729,000
EBIT 260,841,000
Tax Provision 587,000
Depreciation and Amortization 183,482,000
Capital Expenditure -74,293,000
Unlevered Free Cash Flow 368,560,150
Current Assets 31,457,000
Current Cash 0
Current Liabilities 109,057,000
Current Debt 0
Non-Cash Working Capital (NCWC) -77,600,000
Change in NCWC 15,796,000
EBIT 260,262,000
Tax Provision 847,000
Depreciation and Amortization 176,499,000
Capital Expenditure -63,305,000
Unlevered Free Cash Flow 388,049,626
Current Assets 31,460,000
Current Cash 0
Current Liabilities 124,856,000
Current Debt 0
Non-Cash Working Capital (NCWC) -93,396,000
Change in NCWC -40,525,000
EBIT 190,733,000
Tax Provision 431,000
Depreciation and Amortization 148,163,000
Capital Expenditure -65,128,000
Unlevered Free Cash Flow 232,676,386
Current Assets 24,743,000
Current Cash 0
Current Liabilities 77,614,000
Current Debt 0
Non-Cash Working Capital (NCWC) -52,871,000
Change in NCWC -20,195,000
EBIT 181,032,000
Tax Provision 898,000
Depreciation and Amortization 127,449,000
Capital Expenditure -62,260,000
Unlevered Free Cash Flow 224,650,483
Current Assets 22,879,000
Current Cash 0
Current Liabilities 55,555,000
Current Debt 0
Non-Cash Working Capital (NCWC) -32,676,000
Change in NCWC -26,178,000
EBIT 160,446,000
Tax Provision 1,969,000
Depreciation and Amortization 113,112,000
Capital Expenditure -67,990,000
Unlevered Free Cash Flow 143,498,364

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