DCF Tool

CUBE

CubeSmart – Other Financial Vehicles
with more personalized storage solutions and over 600 convenient locations nationwide, our customers can expect to get more out of self storage than they put in. same space. same price. more services. now that's smart. cubesmart has the best-trained managers in the industry who are committed to delivering top-notch, unparalleled service. we’ve elevated ourselves through our first-in-industry wow! department. focused on delivering a better storage experience than our customers could have imagined, wow! is the next step in the evolution of customer service. interested in working at cubesmart? go to careers.cubesmart.com. interested in selling your facility? we're looking to buy existing properties! email our acquisitions team at inquiry@cubesmart.com. find cubesmart elsewhere on the web: http://cubesmart.com http://careers.cubesmart.com www.facebook.com/cubesmart https://twitter.com/cubesmart https://www.youtube.com/user/cubesmartstorage https://plus.google.com/+cubesmart/
Analysis Results
Intrinsic Value $125.57
Latest Price $38.50
Relative Value 69% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 26.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 26.8%, 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)
2023 0.707 0.66
2024 0.897 0.78
2025 1.14 0.922
2026 1.44 1.09
2027 1.83 1.29
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 35.7 billion. This corresponds to a present value of 23.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.74 billion. Adding in the terminal value gives a total present value of 28.2 billion.

There are presently 225.0 million outstanding shares, so the intrinsic value per share is 125.57.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 33,157,000
Current Cash 6,064,000
Current Liabilities 427,004,000
Current Debt 60,900,000
Non-Cash Working Capital (NCWC) -339,011,000
Change in NCWC -24,013,000
EBIT 389,653,000
Tax Provision 0
Depreciation and Amortization 314,507,000
Capital Expenditure -65,591,000
Unlevered Free Cash Flow 614,556,000
Current Assets 31,753,000
Current Cash 11,140,000
Current Liabilities 335,611,000
Current Debt 0
Non-Cash Working Capital (NCWC) -314,998,000
Change in NCWC -74,819,000
EBIT 315,877,000
Tax Provision 0
Depreciation and Amortization 240,217,000
Capital Expenditure -104,495,000
Unlevered Free Cash Flow 376,780,000
Current Assets 21,018,000
Current Cash 3,592,000
Current Liabilities 257,605,000
Current Debt 0
Non-Cash Working Capital (NCWC) -240,179,000
Change in NCWC -25,106,000
EBIT 257,725,000
Tax Provision 0
Depreciation and Amortization 159,247,000
Capital Expenditure -105,143,000
Unlevered Free Cash Flow 286,723,000
Current Assets 68,140,000
Current Cash 54,857,000
Current Liabilities 228,356,000
Current Debt 0
Non-Cash Working Capital (NCWC) -215,073,000
Change in NCWC 6,980,000
EBIT 244,607,000
Tax Provision 0
Depreciation and Amortization 166,366,000
Capital Expenditure -140,395,000
Unlevered Free Cash Flow 277,558,000
Current Assets 15,321,000
Current Cash 3,764,000
Current Liabilities 233,610,000
Current Debt 0
Non-Cash Working Capital (NCWC) -222,053,000
Change in NCWC -12,960,000
EBIT 219,151,000
Tax Provision 0
Depreciation and Amortization 145,663,000
Capital Expenditure -113,628,000
Unlevered Free Cash Flow 238,226,000
Current Assets 16,831,000
Current Cash 5,268,000
Current Liabilities 220,656,000
Current Debt 0
Non-Cash Working Capital (NCWC) -209,093,000
Change in NCWC -55,429,000
EBIT 194,329,000
Tax Provision 0
Depreciation and Amortization 148,319,000
Capital Expenditure -93,621,000
Unlevered Free Cash Flow 193,598,000
Current Assets 12,950,000
Current Cash 2,973,000
Current Liabilities 163,641,000
Current Debt 0
Non-Cash Working Capital (NCWC) -153,664,000
Change in NCWC -21,012,000
EBIT 140,290,000
Tax Provision 0
Depreciation and Amortization 164,442,000
Capital Expenditure -174,684,000
Unlevered Free Cash Flow 109,036,000
Current Assets 71,858,000
Current Cash 62,869,000
Current Liabilities 141,641,000
Current Debt 0
Non-Cash Working Capital (NCWC) -132,652,000
Change in NCWC -27,812,000
EBIT 107,477,000
Tax Provision 0
Depreciation and Amortization 154,113,000
Capital Expenditure -106,010,000
Unlevered Free Cash Flow 127,768,000
Current Assets 11,108,000
Current Cash 2,901,000
Current Liabilities 113,047,000
Current Debt 0
Non-Cash Working Capital (NCWC) -104,840,000
Change in NCWC -22,670,000
EBIT 75,624,000
Tax Provision 0
Depreciation and Amortization 129,003,000
Capital Expenditure -43,533,000
Unlevered Free Cash Flow 138,424,000
Current Assets 11,330,000
Current Cash 3,176,000
Current Liabilities 90,324,000
Current Debt 0
Non-Cash Working Capital (NCWC) -82,170,000
Change in NCWC -7,079,000
EBIT 57,654,000
Tax Provision 0
Depreciation and Amortization 117,074,000
Capital Expenditure -74,299,000
Unlevered Free Cash Flow 93,350,000
Current Assets 18,065,000
Current Cash 4,495,000
Current Liabilities 88,661,000
Current Debt 0
Non-Cash Working Capital (NCWC) -75,091,000
Change in NCWC -8,794,000
EBIT 30,532,000
Tax Provision 0
Depreciation and Amortization 118,573,000
Capital Expenditure -247,413,000
Unlevered Free Cash Flow -107,102,000

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.