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Physicians Realty Trust – Other Financial Vehicles
Physicians Realty Trust is a self-managed health care real estate company organized to acquire, selectively develop, own and manage health care properties that are leased to physicians, hospitals and health care delivery systems. The Company invests in real estate that is integral to providing high quality health care. The Company conducts its business through an UPREIT structure in which its properties are owned by Physicians Realty L.P., a Delaware limited partnership (the 'operating partnership'), directly or through limited partnerships, limited liability companies or other subsidiaries. The Company is the sole general partner of the operating partnership and, as of December 31, 2020, owned approximately 97.3% of OP Units.
Analysis Results
Intrinsic Value $56.14
Latest Price $17.95
Relative Value 68% 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 12.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 12.6%, 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 302 288
2023 340 310
2024 383 333
2025 431 358
2026 485 385
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 14500 million. This corresponds to a present value of 11000 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1670 million. Adding in the terminal value gives a total present value of 12700 million.

There are presently 226.0 million outstanding shares, so the intrinsic value per share is 56.14.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 258,038,000
Current Cash 9,876,000
Current Liabilities 171,720,000
Current Debt 0
Non-Cash Working Capital (NCWC) 76,442,000
Change in NCWC -107,812,000
EBIT 102,288,000
Tax Provision 0
Depreciation and Amortization 157,870,000
Capital Expenditure -32,566,000
Unlevered Free Cash Flow 119,780,000
Current Assets 344,462,000
Current Cash 2,515,000
Current Liabilities 157,693,000
Current Debt 0
Non-Cash Working Capital (NCWC) 184,254,000
Change in NCWC 13,194,000
EBIT 105,382,000
Tax Provision 0
Depreciation and Amortization 149,590,000
Capital Expenditure -33,887,000
Unlevered Free Cash Flow 234,279,000
Current Assets 312,654,000
Current Cash 2,355,000
Current Liabilities 139,239,000
Current Debt 0
Non-Cash Working Capital (NCWC) 171,060,000
Change in NCWC 122,997,000
EBIT 99,997,000
Tax Provision 0
Depreciation and Amortization 146,436,000
Capital Expenditure -40,137,000
Unlevered Free Cash Flow 329,293,000
Current Assets 204,045,000
Current Cash 19,161,000
Current Liabilities 136,821,000
Current Debt 0
Non-Cash Working Capital (NCWC) 48,063,000
Change in NCWC 3,320,000
EBIT 101,284,000
Tax Provision 0
Depreciation and Amortization 158,389,000
Capital Expenditure -34,638,000
Unlevered Free Cash Flow 228,355,000
Current Assets 172,950,000
Current Cash 2,727,000
Current Liabilities 125,480,000
Current Debt 0
Non-Cash Working Capital (NCWC) 44,743,000
Change in NCWC 9,872,000
EBIT 90,130,000
Tax Provision 0
Depreciation and Amortization 125,159,000
Capital Expenditure -23,243,000
Unlevered Free Cash Flow 201,918,000
Current Assets 137,112,000
Current Cash 15,491,000
Current Liabilities 311,080,000
Current Debt 224,330,000
Non-Cash Working Capital (NCWC) 34,871,000
Change in NCWC -9,742,000
EBIT 61,306,000
Tax Provision 0
Depreciation and Amortization 86,589,000
Capital Expenditure -11,304,000
Unlevered Free Cash Flow 126,849,000
Current Assets 99,606,000
Current Cash 3,143,000
Current Liabilities 51,850,000
Current Debt 0
Non-Cash Working Capital (NCWC) 44,613,000
Change in NCWC 39,526,000
EBIT 34,260,000
Tax Provision 0
Depreciation and Amortization 45,471,000
Capital Expenditure -4,988,000
Unlevered Free Cash Flow 114,269,000
Current Assets 47,269,000
Current Cash 15,923,000
Current Liabilities 26,259,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,087,000
Change in NCWC -15,557,000
EBIT 14,038,000
Tax Provision 0
Depreciation and Amortization 16,731,000
Capital Expenditure -900,000
Unlevered Free Cash Flow 14,312,000

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