DCF Tool

DEA

Easterly Government Properties Inc – Other Financial Vehicles
we focus primarily on the acquisition, development and management of class a commercial properties that are leased to u.s. government agencies that serve essential u.s. government functions. we generate substantially all of our revenue by leasing our properties to such agencies through the gsa. our multidisciplinary team possesses complementary skills and experience that we expect will drive our business and growth strategies. we plan to grow our business primarily through the pursuit of attractive acquisition opportunities, the development of built-to-suit u.s. government properties and the renewal of existing leases at positive spreads. we maintain a proprietary database that tracks approximately 8,500 leases totaling approximately 200 million rentable square feet and includes substantially every major u.s. government-leased property that meets our investment criteria as well as information about the ownership of such properties.
Analysis Results
Intrinsic Value $153.61
Latest Price $11.50
Relative Value 93% 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 33.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 33.5%, 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 193 183
2024 257 231
2025 343 292
2026 458 369
2027 611 467
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 17700 million. This corresponds to a present value of 12800 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1540 million. Adding in the terminal value gives a total present value of 14300 million.

There are presently 93.4 million outstanding shares, so the intrinsic value per share is 153.61.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 76,109,000
Current Cash 7,578,000
Current Liabilities 150,645,000
Current Debt 0
Non-Cash Working Capital (NCWC) -82,114,000
Change in NCWC 3,866,000
EBIT 74,890,000
Tax Provision 0
Depreciation and Amortization 98,254,000
Capital Expenditure -34,918,000
Unlevered Free Cash Flow 142,092,000
Current Assets 78,876,000
Current Cash 11,132,000
Current Liabilities 153,724,000
Current Debt 0
Non-Cash Working Capital (NCWC) -85,980,000
Change in NCWC 16,483,000
EBIT 71,282,000
Tax Provision 0
Depreciation and Amortization 91,266,000
Capital Expenditure -24,136,000
Unlevered Free Cash Flow 154,895,000
Current Assets 59,908,000
Current Cash 8,465,000
Current Liabilities 153,906,000
Current Debt 0
Non-Cash Working Capital (NCWC) -102,463,000
Change in NCWC -16,701,000
EBIT 53,003,000
Tax Provision 0
Depreciation and Amortization 93,803,000
Capital Expenditure -61,011,000
Unlevered Free Cash Flow 69,094,000
Current Assets 59,157,000
Current Cash 12,012,000
Current Liabilities 132,907,000
Current Debt 0
Non-Cash Working Capital (NCWC) -85,762,000
Change in NCWC -52,901,000
EBIT 35,439,000
Tax Provision 0
Depreciation and Amortization 92,439,000
Capital Expenditure -67,804,000
Unlevered Free Cash Flow 7,173,000
Current Assets 43,935,000
Current Cash 6,854,000
Current Liabilities 69,942,000
Current Debt 0
Non-Cash Working Capital (NCWC) -32,861,000
Change in NCWC -123,000
EBIT 29,562,000
Tax Provision 0
Depreciation and Amortization 66,403,000
Capital Expenditure -64,174,000
Unlevered Free Cash Flow 31,668,000
Current Assets 38,299,000
Current Cash 12,682,000
Current Liabilities 58,355,000
Current Debt 0
Non-Cash Working Capital (NCWC) -32,738,000
Change in NCWC 6,873,000
EBIT 22,770,000
Tax Provision 0
Depreciation and Amortization 46,356,000
Capital Expenditure -13,825,000
Unlevered Free Cash Flow 62,174,000
Current Assets 20,858,000
Current Cash 4,845,000
Current Liabilities 55,624,000
Current Debt 0
Non-Cash Working Capital (NCWC) -39,611,000
Change in NCWC 3,337,000
EBIT 12,914,000
Tax Provision 0
Depreciation and Amortization 39,490,000
Capital Expenditure -1,562,000
Unlevered Free Cash Flow 54,179,000
Current Assets 19,179,000
Current Cash 8,176,000
Current Liabilities 53,951,000
Current Debt 0
Non-Cash Working Capital (NCWC) -42,948,000
Change in NCWC -39,627,000
EBIT 4,049,000
Tax Provision 0
Depreciation and Amortization 28,695,000
Capital Expenditure -453,000
Unlevered Free Cash Flow -7,336,000

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