DCF Tool

CUBE

CubeSmart – Other Financial Vehicles
CubeSmart is a self-administered and self-managed real estate investment trust. CubeSmart owns or manages 1,238 self-storage properties across the United States. According to the 2020 Self Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the U.S.
Analysis Results
Intrinsic Value $69.16
Latest Price $42.73
Relative Value 38% 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 18.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 18.6%, 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)
2022 439 411
2023 520 458
2024 617 509
2025 732 566
2026 869 630
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 19100 million. This corresponds to a present value of 13000 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2570 million. Adding in the terminal value gives a total present value of 15500 million.

There are presently 225.0 million outstanding shares, so the intrinsic value per share is 69.16.

Financial Statements

The following data was to determine the past cash flows.

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

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