DCF Tool

EQC

Equity Commonwealth – Other Financial Vehicles
equity commonwealth (nyse: eqc) is a chicago based, internally managed and self-advised real estate investment trust (reit) with commercial office properties throughout the united states. eqc’s portfolio is comprised of 15 properties and 7.1 million square feet. eqc’s corporate culture is instilled with equity company values of accountability and alignment with stakeholders, and an emphasis on creating value. our core values center around building a culture that encourages transparency and open communication based on the following guiding principles:  use your best judgment  keep your word  be a team player  no surprises  speak up  reward outstanding performance  serve our customers  exchange ideas  celebrate diversity for career opportunities please visit: https://workforcenow.adp.com/jobs/apply/posting.html?client=eqcmgmt
Analysis Results
Intrinsic Value $0.98
Latest Price $18.52
Relative Value 1782% overvalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Millions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 -27.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -27.4%, 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 15.1 14.2
2024 11.0 9.73
2025 7.98 6.65
2026 5.8 4.55
2027 4.21 3.11
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 100 million. This corresponds to a present value of 69.7 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 38.3 million. Adding in the terminal value gives a total present value of 108 million.

There are presently 110.0 million outstanding shares, so the intrinsic value per share is 0.98.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,598,231,000
Current Cash 2,582,222,000
Current Liabilities 31,153,000
Current Debt 0
Non-Cash Working Capital (NCWC) -15,144,000
Change in NCWC -4,580,000
EBIT -9,232,000
Tax Provision 453,000
Depreciation and Amortization 17,810,000
Capital Expenditure -3,577,000
Unlevered Free Cash Flow 531,608
Current Assets 2,816,547,000
Current Cash 2,800,998,000
Current Liabilities 26,113,000
Current Debt 0
Non-Cash Working Capital (NCWC) -10,564,000
Change in NCWC 9,241,000
EBIT -23,109,000
Tax Provision 120,000
Depreciation and Amortization 17,774,000
Capital Expenditure -6,803,000
Unlevered Free Cash Flow -2,897,000
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

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.