DCF Tool

ESRT

Empire State Realty Trust Inc – Other Financial Vehicles
empire state realty trust, inc. (nyse: esrt), a leading real estate investment trust (reit), owns, manages, operates, acquires and repositions office and retail properties in manhattan and the greater new york metropolitan area, including the empire state building, the world's most famous building. headquartered in new york, new york, the company's office and retail portfolio covers 10.0 million rentable square feet, as of june 30, 2015, consisting of 9.3 million rentable square feet in 14 office properties, including nine in manhattan, three in fairfield county, connecticut and two in westchester county, new york; and approximately 720,000 rentable square feet in the retail portfolio.
Analysis Results
Intrinsic Value $37.48
Latest Price $9.39
Relative Value 75% 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 3.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 3.4%, 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 193 185
2024 199 183
2025 206 182
2026 213 180
2027 220 179
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 6590 million. This corresponds to a present value of 5140 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 909 million. Adding in the terminal value gives a total present value of 6050 million.

There are presently 161.0 million outstanding shares, so the intrinsic value per share is 37.48.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 626,838,000
Current Cash 264,434,000
Current Liabilities 105,813,000
Current Debt 0
Non-Cash Working Capital (NCWC) 256,591,000
Change in NCWC 60,724,000
EBIT 127,028,000
Tax Provision 1,546,000
Depreciation and Amortization 216,894,000
Capital Expenditure -126,268,000
Unlevered Free Cash Flow 275,345,397
Current Assets 743,813,000
Current Cash 423,695,000
Current Liabilities 124,251,000
Current Debt 0
Non-Cash Working Capital (NCWC) 195,867,000
Change in NCWC -602,000
EBIT 79,133,000
Tax Provision -1,734,000
Depreciation and Amortization 201,806,000
Capital Expenditure -95,037,000
Unlevered Free Cash Flow 185,300,000
Current Assets 847,945,000
Current Cash 526,714,000
Current Liabilities 124,762,000
Current Debt 0
Non-Cash Working Capital (NCWC) 196,469,000
Change in NCWC 45,649,000
EBIT 58,661,000
Tax Provision -6,971,000
Depreciation and Amortization 191,006,000
Capital Expenditure -143,118,000
Unlevered Free Cash Flow 152,198,000
Current Assets 545,782,000
Current Cash 233,946,000
Current Liabilities 161,016,000
Current Debt 0
Non-Cash Working Capital (NCWC) 150,820,000
Change in NCWC 39,370,000
EBIT 154,706,000
Tax Provision 2,429,000
Depreciation and Amortization 181,588,000
Capital Expenditure -250,254,000
Unlevered Free Cash Flow 121,076,683
Current Assets 899,666,000
Current Cash 604,981,000
Current Liabilities 183,235,000
Current Debt 0
Non-Cash Working Capital (NCWC) 111,450,000
Change in NCWC 963,000
EBIT 190,857,000
Tax Provision 4,642,000
Depreciation and Amortization 168,508,000
Capital Expenditure -243,022,000
Unlevered Free Cash Flow 110,037,792
Current Assets 732,330,000
Current Cash 464,344,000
Current Liabilities 157,499,000
Current Debt 0
Non-Cash Working Capital (NCWC) 110,487,000
Change in NCWC 57,778,000
EBIT 195,845,000
Tax Provision 6,673,000
Depreciation and Amortization 160,710,000
Capital Expenditure -222,979,000
Unlevered Free Cash Flow 180,892,817
Current Assets 782,736,000
Current Cash 554,371,000
Current Liabilities 175,656,000
Current Debt 0
Non-Cash Working Capital (NCWC) 52,709,000
Change in NCWC 19,486,000
EBIT 184,543,000
Tax Provision 6,146,000
Depreciation and Amortization 155,211,000
Capital Expenditure -181,923,000
Unlevered Free Cash Flow 167,314,872
Current Assets 237,975,000
Current Cash 46,685,000
Current Liabilities 158,067,000
Current Debt 0
Non-Cash Working Capital (NCWC) 33,223,000
Change in NCWC -4,119,000
EBIT 151,369,000
Tax Provision 3,949,000
Depreciation and Amortization 171,474,000
Capital Expenditure -141,685,000
Unlevered Free Cash Flow 169,912,419

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