DCF Tool

BXP

Boston Properties, Inc. – Other Financial Vehicles
Boston Properties is the largest publicly held developer and owner of Class A office properties in the United States, concentrated in five markets - Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company's portfolio totals 51.2 million square feet and 196 properties, including seven properties under construction.
Analysis Results
Intrinsic Value $190.95
Latest Price $89.83
Relative Value 53% 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 2.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 2.4%, 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 0.925 0.898
2023 0.947 0.892
2024 0.969 0.887
2025 0.993 0.881
2026 1.02 0.876
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 30.5 billion. This corresponds to a present value of 25.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.43 billion. Adding in the terminal value gives a total present value of 29.9 billion.

There are presently 157.0 million outstanding shares, so the intrinsic value per share is 190.95.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,939,043,000
Current Cash 452,692,000
Current Liabilities 585,430,000
Current Debt 0
Non-Cash Working Capital (NCWC) 900,921,000
Change in NCWC 145,064,000
EBIT 965,470,000
Tax Provision 0
Depreciation and Amortization 720,852,000
Capital Expenditure -928,828,000
Unlevered Free Cash Flow 902,558,000
Current Assets 3,038,233,000
Current Cash 1,668,742,000
Current Liabilities 613,634,000
Current Debt 0
Non-Cash Working Capital (NCWC) 755,857,000
Change in NCWC 109,877,000
EBIT 820,212,000
Tax Provision 0
Depreciation and Amortization 685,985,000
Capital Expenditure -877,056,000
Unlevered Free Cash Flow 739,018,000
Current Assets 1,929,212,000
Current Cash 644,950,000
Current Liabilities 638,282,000
Current Debt 0
Non-Cash Working Capital (NCWC) 645,980,000
Change in NCWC 27,815,000
EBIT 1,092,229,000
Tax Provision 0
Depreciation and Amortization 680,176,000
Capital Expenditure -1,127,478,000
Unlevered Free Cash Flow 672,742,000
Current Assets 1,692,550,000
Current Cash 543,359,000
Current Liabilities 531,026,000
Current Debt 0
Non-Cash Working Capital (NCWC) 618,165,000
Change in NCWC 189,429,000
EBIT 927,719,000
Tax Provision 0
Depreciation and Amortization 645,649,000
Capital Expenditure -399,805,000
Unlevered Free Cash Flow 1,362,992,000
Current Assets 1,417,689,000
Current Cash 434,767,000
Current Liabilities 554,186,000
Current Debt 0
Non-Cash Working Capital (NCWC) 428,736,000
Change in NCWC 186,001,000
EBIT 919,342,000
Tax Provision 0
Depreciation and Amortization 617,547,000
Capital Expenditure -443,766,000
Unlevered Free Cash Flow 1,279,124,000
Current Assets 1,272,414,000
Current Cash 356,914,000
Current Liabilities 672,765,000
Current Debt 0
Non-Cash Working Capital (NCWC) 242,735,000
Change in NCWC 162,022,000
EBIT 833,858,000
Tax Provision 0
Depreciation and Amortization 694,403,000
Capital Expenditure -458,938,000
Unlevered Free Cash Flow 1,231,345,000
Current Assets 1,596,846,000
Current Cash 723,718,000
Current Liabilities 792,415,000
Current Debt 0
Non-Cash Working Capital (NCWC) 80,713,000
Change in NCWC 611,927,000
EBIT 872,135,000
Tax Provision 0
Depreciation and Amortization 639,542,000
Capital Expenditure -631,991,000
Unlevered Free Cash Flow 1,491,613,000
Current Assets 2,521,132,000
Current Cash 1,763,079,000
Current Liabilities 1,289,267,000
Current Debt 0
Non-Cash Working Capital (NCWC) -531,214,000
Change in NCWC -391,687,000
EBIT 814,591,000
Tax Provision 0
Depreciation and Amortization 628,573,000
Capital Expenditure -594,424,000
Unlevered Free Cash Flow 457,053,000
Current Assets 3,092,845,000
Current Cash 2,365,137,000
Current Liabilities 867,235,000
Current Debt 0
Non-Cash Working Capital (NCWC) -139,527,000
Change in NCWC -824,709,000
EBIT 879,470,000
Tax Provision 0
Depreciation and Amortization 565,397,000
Capital Expenditure -576,081,000
Unlevered Free Cash Flow 44,077,000
Current Assets 2,109,211,000
Current Cash 1,041,978,000
Current Liabilities 382,051,000
Current Debt 0
Non-Cash Working Capital (NCWC) 685,182,000
Change in NCWC 18,970,000
EBIT 738,676,000
Tax Provision 0
Depreciation and Amortization 454,044,000
Capital Expenditure -546,002,000
Unlevered Free Cash Flow 665,688,000

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