DCF Tool

ESS

Essex Property Trust, Inc. – Other Financial Vehicles
Essex Property Trust, Inc. ('Essex'), an S&P 500 company, is a fully integrated real estate investment trust ('REIT') that acquires, develops, redevelops, and manages multifamily residential properties in selected West Coast markets. Essex currently has ownership interests in 246 apartment communities comprising approximately 60,000 apartment homes with an additional 6 properties in various stages of active development.
Analysis Results
Intrinsic Value $639.07
Latest Price $213.89
Relative Value 67% undervalued
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Cash Flow (Billions)
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 11.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.2%, 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 (billion) Present value (billion)
2022 1.26 1.19
2023 1.4 1.25
2024 1.56 1.31
2025 1.73 1.37
2026 1.92 1.44
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 49.3 billion. This corresponds to a present value of 34.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.56 billion. Adding in the terminal value gives a total present value of 41.4 billion.

There are presently 64.8 million outstanding shares, so the intrinsic value per share is 639.07.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 464,635,000
Current Cash 48,420,000
Current Liabilities 388,645,000
Current Debt 0
Non-Cash Working Capital (NCWC) 27,570,000
Change in NCWC 130,748,000
EBIT 644,179,000
Tax Provision 15,668,000
Depreciation and Amortization 520,066,000
Capital Expenditure -170,979,000
Unlevered Free Cash Flow 1,105,019,315
Current Assets 326,485,000
Current Cash 73,629,000
Current Liabilities 356,034,000
Current Debt 0
Non-Cash Working Capital (NCWC) -103,178,000
Change in NCWC 52,828,000
EBIT 796,063,000
Tax Provision 1,531,000
Depreciation and Amortization 525,497,000
Capital Expenditure -550,506,000
Unlevered Free Cash Flow 821,853,630
Current Assets 256,394,000
Current Cash 70,087,000
Current Liabilities 342,313,000
Current Debt 0
Non-Cash Working Capital (NCWC) -156,006,000
Change in NCWC 30,690,000
EBIT 632,056,000
Tax Provision 1,457,000
Depreciation and Amortization 483,750,000
Capital Expenditure -101,689,000
Unlevered Free Cash Flow 1,042,830,404
Current Assets 262,729,000
Current Cash 134,465,000
Current Liabilities 314,960,000
Current Debt 0
Non-Cash Working Capital (NCWC) -186,696,000
Change in NCWC -19,108,000
EBIT 602,568,000
Tax Provision 0
Depreciation and Amortization 479,884,000
Capital Expenditure -96,995,000
Unlevered Free Cash Flow 966,349,000
Current Assets 214,449,000
Current Cash 44,620,000
Current Liabilities 337,417,000
Current Debt 0
Non-Cash Working Capital (NCWC) -167,588,000
Change in NCWC -78,084,000
EBIT 649,600,000
Tax Provision 0
Depreciation and Amortization 468,881,000
Capital Expenditure -277,180,000
Unlevered Free Cash Flow 763,217,000
Current Assets 259,722,000
Current Cash 64,921,000
Current Liabilities 284,305,000
Current Debt 0
Non-Cash Working Capital (NCWC) -89,504,000
Change in NCWC 34,893,000
EBIT 625,900,000
Tax Provision 4,410,000
Depreciation and Amortization 441,682,000
Capital Expenditure -375,645,000
Unlevered Free Cash Flow 720,596,724
Current Assets 177,920,000
Current Cash 29,683,000
Current Liabilities 272,634,000
Current Debt 0
Non-Cash Working Capital (NCWC) -124,397,000
Change in NCWC 8,471,000
EBIT 440,594,000
Tax Provision 0
Depreciation and Amortization 453,423,000
Capital Expenditure -57,277,000
Unlevered Free Cash Flow 845,211,000
Current Assets 153,661,000
Current Cash 25,281,000
Current Liabilities 261,248,000
Current Debt 0
Non-Cash Working Capital (NCWC) -132,868,000
Change in NCWC -141,640,000
EBIT 296,815,000
Tax Provision 0
Depreciation and Amortization 360,592,000
Capital Expenditure -78,864,000
Unlevered Free Cash Flow 436,903,000
Current Assets 245,886,000
Current Cash 108,575,000
Current Liabilities 128,539,000
Current Debt 0
Non-Cash Working Capital (NCWC) 8,772,000
Change in NCWC 5,994,000
EBIT 275,743,000
Tax Provision 0
Depreciation and Amortization 205,734,000
Capital Expenditure -410,947,000
Unlevered Free Cash Flow 76,524,000
Current Assets 236,005,000
Current Cash 111,319,000
Current Liabilities 121,908,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,778,000
Change in NCWC -11,346,000
EBIT 223,006,000
Tax Provision 0
Depreciation and Amortization 182,330,000
Capital Expenditure -92,015,000
Unlevered Free Cash Flow 301,975,000

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