DCF Tool

EQC

Equity Commonwealth – Other Financial Vehicles
Equity Commonwealth is a Chicago based, internally managed and self-advised real estate investment trust (REIT) with commercial office properties in the United States. EQC’s same property portfolio is comprised of 4 properties and 1.5 million square feet.
Analysis Results
Intrinsic Value $1.84
Latest Price $26.86
Relative Value 1359% overvalued
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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 -26.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -26.9%, 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 22.0 21.2
2023 16.1 14.9
2024 11.8 10.4
2025 8.6 7.34
2026 6.29 5.15
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 189 million. This corresponds to a present value of 148 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 59.0 million. Adding in the terminal value gives a total present value of 207 million.

There are presently 113.0 million outstanding shares, so the intrinsic value per share is 1.84.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,633,094,000
Current Cash 5,601,996,000
Current Liabilities 52,226,000
Current Debt 0
Non-Cash Working Capital (NCWC) -21,128,000
Change in NCWC -1,323,000
EBIT -46,218,000
Tax Provision 240,000
Depreciation and Amortization 35,548,000
Capital Expenditure -13,606,000
Unlevered Free Cash Flow -25,599,000
Current Assets 3,001,927,000
Current Cash 2,987,225,000
Current Liabilities 34,507,000
Current Debt 0
Non-Cash Working Capital (NCWC) -19,805,000
Change in NCWC 8,455,000
EBIT -15,142,000
Tax Provision 248,000
Depreciation and Amortization 20,096,000
Capital Expenditure -12,039,000
Unlevered Free Cash Flow 1,378,301
Current Assets 2,815,196,000
Current Cash 2,795,642,000
Current Liabilities 47,814,000
Current Debt 0
Non-Cash Working Capital (NCWC) -28,260,000
Change in NCWC -7,530,000
EBIT 14,868,000
Tax Provision 1,284,000
Depreciation and Amortization 24,676,000
Capital Expenditure -26,052,000
Unlevered Free Cash Flow 5,923,366
Current Assets 2,451,892,000
Current Cash 2,400,803,000
Current Liabilities 71,819,000
Current Debt 0
Non-Cash Working Capital (NCWC) -20,730,000
Change in NCWC -29,135,000
EBIT 23,626,000
Tax Provision 3,156,000
Depreciation and Amortization 48,700,000
Capital Expenditure -49,930,000
Unlevered Free Cash Flow -7,009,095
Current Assets 2,445,129,000
Current Cash 2,351,693,000
Current Liabilities 85,031,000
Current Debt 0
Non-Cash Working Capital (NCWC) 8,405,000
Change in NCWC -21,611,000
EBIT 60,678,000
Tax Provision 500,000
Depreciation and Amortization 92,152,000
Capital Expenditure -64,813,000
Unlevered Free Cash Flow 65,400,265
Current Assets 2,246,705,000
Current Cash 2,094,674,000
Current Liabilities 122,015,000
Current Debt 0
Non-Cash Working Capital (NCWC) 30,016,000
Change in NCWC 16,605,000
EBIT 117,912,000
Tax Provision 745,000
Depreciation and Amortization 138,337,000
Capital Expenditure -121,450,000
Unlevered Free Cash Flow 151,028,016
Current Assets 1,977,405,000
Current Cash 1,802,729,000
Current Liabilities 161,265,000
Current Debt 0
Non-Cash Working Capital (NCWC) 13,411,000
Change in NCWC -27,083,000
EBIT 138,485,000
Tax Provision 2,364,000
Depreciation and Amortization 201,474,000
Capital Expenditure -70,633,000
Unlevered Free Cash Flow 239,040,345
Current Assets 627,159,000
Current Cash 379,058,000
Current Liabilities 207,607,000
Current Debt 0
Non-Cash Working Capital (NCWC) 40,494,000
Change in NCWC 31,494,000
EBIT 166,638,000
Tax Provision 3,191,000
Depreciation and Amortization 238,147,000
Capital Expenditure -99,651,000
Unlevered Free Cash Flow 317,080,822
Current Assets 446,218,000
Current Cash 222,449,000
Current Liabilities 214,769,000
Current Debt 0
Non-Cash Working Capital (NCWC) 9,000,000
Change in NCWC 22,308,000
EBIT 261,584,000
Tax Provision 2,634,000
Depreciation and Amortization 256,477,000
Capital Expenditure -114,451,000
Unlevered Free Cash Flow 425,918,000
Current Assets 355,613,000
Current Cash 102,219,000
Current Liabilities 266,702,000
Current Debt 0
Non-Cash Working Capital (NCWC) -13,308,000
Change in NCWC 99,000
EBIT 287,365,000
Tax Provision 3,207,000
Depreciation and Amortization 268,254,000
Capital Expenditure -131,300,000
Unlevered Free Cash Flow 424,418,000

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