DCF Tool

DEI

Douglas Emmett Inc – Other Financial Vehicles
douglas emmett, inc. (nyse:dei) is a leading provider of class-a office properties and luxury apartment communities in southern california and honolulu. with an office portfolio consisting of 62 class-a properties (totaling approximately 15.5 million rentable square feet), and a residential portfolio comprised of 10 premier apartment communities (totaling 3,336 units), douglas emmett offers tenants a wide variety of immediate office and living solutions to fit any requirement. douglas emmett's properties are currently located in nine premier southern california submarkets - brentwood, century city, santa monica, beverly hills, olympic corridor, westwood, sherman oaks/encino, warner center/woodland hills and burbank - with a growing presence in honolulu. douglas emmett's corporate headquarters is located in santa monica, ca.
Analysis Results
Intrinsic Value $97.69
Latest Price $12.45
Relative Value 87% 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 6.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 6.3%, 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 488 465
2024 519 470
2025 551 476
2026 586 481
2027 623 487
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 18700 million. This corresponds to a present value of 13900 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2380 million. Adding in the terminal value gives a total present value of 16300 million.

There are presently 167.0 million outstanding shares, so the intrinsic value per share is 97.69.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 680,801,000
Current Cash 268,837,000
Current Liabilities 237,558,000
Current Debt 0
Non-Cash Working Capital (NCWC) 174,406,000
Change in NCWC 334,555,000
EBIT 242,852,000
Tax Provision 0
Depreciation and Amortization 372,798,000
Capital Expenditure -238,118,000
Unlevered Free Cash Flow 712,087,000
Current Assets 495,589,000
Current Cash 335,905,000
Current Liabilities 319,833,000
Current Debt 0
Non-Cash Working Capital (NCWC) -160,149,000
Change in NCWC 155,397,000
EBIT 202,099,000
Tax Provision 0
Depreciation and Amortization 371,289,000
Capital Expenditure -293,091,000
Unlevered Free Cash Flow 435,694,000
Current Assets 320,584,000
Current Cash 172,385,000
Current Liabilities 463,745,000
Current Debt 0
Non-Cash Working Capital (NCWC) -315,546,000
Change in NCWC -190,848,000
EBIT 161,691,000
Tax Provision 0
Depreciation and Amortization 385,248,000
Capital Expenditure -297,598,000
Unlevered Free Cash Flow 58,493,000
Current Assets 325,045,000
Current Cash 153,683,000
Current Liabilities 296,060,000
Current Debt 0
Non-Cash Working Capital (NCWC) -124,698,000
Change in NCWC -108,467,000
EBIT 249,631,000
Tax Provision 0
Depreciation and Amortization 357,743,000
Capital Expenditure -238,108,000
Unlevered Free Cash Flow 260,799,000
Current Assets 356,676,000
Current Cash 146,227,000
Current Liabilities 226,680,000
Current Debt 0
Non-Cash Working Capital (NCWC) -16,231,000
Change in NCWC 3,031,000
EBIT 258,344,000
Tax Provision 0
Depreciation and Amortization 309,864,000
Capital Expenditure -247,521,000
Unlevered Free Cash Flow 323,718,000
Current Assets 354,950,000
Current Cash 176,645,000
Current Liabilities 197,567,000
Current Debt 0
Non-Cash Working Capital (NCWC) -19,262,000
Change in NCWC 5,879,000
EBIT 246,928,000
Tax Provision 0
Depreciation and Amortization 276,761,000
Capital Expenditure -171,344,000
Unlevered Free Cash Flow 358,224,000
Current Assets 250,692,000
Current Cash 112,927,000
Current Liabilities 162,906,000
Current Debt 0
Non-Cash Working Capital (NCWC) -25,141,000
Change in NCWC 26,297,000
EBIT 225,761,000
Tax Provision 0
Depreciation and Amortization 248,914,000
Capital Expenditure -119,546,000
Unlevered Free Cash Flow 381,426,000
Current Assets 195,092,000
Current Cash 101,798,000
Current Liabilities 144,732,000
Current Debt 0
Non-Cash Working Capital (NCWC) -51,438,000
Change in NCWC -2,563,000
EBIT 195,450,000
Tax Provision 0
Depreciation and Amortization 205,333,000
Capital Expenditure -79,261,000
Unlevered Free Cash Flow 318,959,000
Current Assets 129,571,000
Current Cash 18,823,000
Current Liabilities 159,623,000
Current Debt 0
Non-Cash Working Capital (NCWC) -48,875,000
Change in NCWC 53,854,000
EBIT 170,781,000
Tax Provision 0
Depreciation and Amortization 202,512,000
Capital Expenditure -88,703,000
Unlevered Free Cash Flow 338,444,000
Current Assets 121,375,000
Current Cash 44,206,000
Current Liabilities 179,898,000
Current Debt 0
Non-Cash Working Capital (NCWC) -102,729,000
Change in NCWC 33,855,000
EBIT 181,182,000
Tax Provision 0
Depreciation and Amortization 191,351,000
Capital Expenditure -217,456,000
Unlevered Free Cash Flow 188,932,000
Current Assets 441,792,000
Current Cash 373,203,000
Current Liabilities 205,173,000
Current Debt 0
Non-Cash Working Capital (NCWC) -136,584,000
Change in NCWC 2,900,000
EBIT 174,100,000
Tax Provision 0
Depreciation and Amortization 184,849,000
Capital Expenditure -60,158,000
Unlevered Free Cash Flow 301,691,000

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