DCF Tool

EXR

Extra Space Storage Inc. – Other Financial Vehicles
Extra Space Storage Inc., headquartered in Salt Lake City, is a fully integrated, self-administered and self-managed real estate investment trust, and a member of the S&P 500. As of December 31, 2020, Extra Space owned and/or operated 1,921 self-storage properties, which comprise approximately 1.4 million units and approximately 149.2 million square feet of rentable storage space offering customers conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. Extra Space is the second largest owner and/or operator of self-storage properties in the United States and is the largest self-storage management company in the United States.
Analysis Results
Intrinsic Value $930.15
Latest Price $212.74
Relative Value 77% 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 37.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 37.3%, 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 2.17 2.03
2023 2.98 2.6
2024 4.09 3.34
2025 5.61 4.29
2026 7.7 5.51
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 160 billion. This corresponds to a present value of 107 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 17.8 billion. Adding in the terminal value gives a total present value of 125 billion.

There are presently 134.0 million outstanding shares, so the intrinsic value per share is 930.15.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,247,639,000
Current Cash 71,126,000
Current Liabilities 1,947,793,000
Current Debt 1,741,926,000
Non-Cash Working Capital (NCWC) 970,646,000
Change in NCWC 553,974,000
EBIT 873,802,000
Tax Provision 20,324,000
Depreciation and Amortization 241,879,000
Capital Expenditure -59,885,000
Unlevered Free Cash Flow 1,589,995,467
Current Assets 702,934,000
Current Cash 109,124,000
Current Liabilities 177,138,000
Current Debt 0
Non-Cash Working Capital (NCWC) 416,672,000
Change in NCWC 235,264,000
EBIT 670,426,000
Tax Provision 13,810,000
Depreciation and Amortization 224,444,000
Capital Expenditure -74,393,000
Unlevered Free Cash Flow 1,038,317,736
Current Assets 403,800,000
Current Cash 65,746,000
Current Liabilities 156,646,000
Current Debt 0
Non-Cash Working Capital (NCWC) 181,408,000
Change in NCWC 328,066,000
EBIT 645,027,000
Tax Provision 11,308,000
Depreciation and Amortization 219,857,000
Capital Expenditure -61,481,000
Unlevered Free Cash Flow 1,115,695,911
Current Assets 57,496,000
Current Cash 57,496,000
Current Liabilities 146,658,000
Current Debt 0
Non-Cash Working Capital (NCWC) -146,658,000
Change in NCWC -53,418,000
EBIT 603,348,000
Tax Provision 9,244,000
Depreciation and Amortization 209,050,000
Capital Expenditure -64,974,000
Unlevered Free Cash Flow 681,783,655
Current Assets 58,530,000
Current Cash 55,683,000
Current Liabilities 96,087,000
Current Debt 0
Non-Cash Working Capital (NCWC) -93,240,000
Change in NCWC 39,602,000
EBIT 556,936,000
Tax Provision 3,625,000
Depreciation and Amortization 193,296,000
Capital Expenditure -692,750,000
Unlevered Free Cash Flow 93,185,371
Current Assets 60,469,000
Current Cash 43,858,000
Current Liabilities 149,453,000
Current Debt 0
Non-Cash Working Capital (NCWC) -132,842,000
Change in NCWC -7,236,000
EBIT 462,733,000
Tax Provision 15,847,000
Depreciation and Amortization 182,560,000
Capital Expenditure -1,114,770,000
Unlevered Free Cash Flow -494,471,029
Current Assets 78,004,000
Current Cash 75,799,000
Current Liabilities 127,811,000
Current Debt 0
Non-Cash Working Capital (NCWC) -125,606,000
Change in NCWC -39,173,000
EBIT 309,864,000
Tax Provision 11,148,000
Depreciation and Amortization 133,457,000
Capital Expenditure -384,208,000
Unlevered Free Cash Flow 4,287,012
Current Assets 59,441,000
Current Cash 47,663,000
Current Liabilities 98,211,000
Current Debt 0
Non-Cash Working Capital (NCWC) -86,433,000
Change in NCWC -4,982,000
EBIT 293,031,000
Tax Provision 7,570,000
Depreciation and Amortization 115,076,000
Capital Expenditure -28,358,000
Unlevered Free Cash Flow 363,864,713
Current Assets 134,265,000
Current Cash 126,723,000
Current Liabilities 88,993,000
Current Debt 0
Non-Cash Working Capital (NCWC) -81,451,000
Change in NCWC -4,250,000
EBIT 271,168,000
Tax Provision 9,984,000
Depreciation and Amortization 95,232,000
Capital Expenditure -356,425,000
Unlevered Free Cash Flow -8,120,460
Current Assets 41,863,000
Current Cash 30,785,000
Current Liabilities 198,762,000
Current Debt 110,483,000
Non-Cash Working Capital (NCWC) -77,201,000
Change in NCWC -27,421,000
EBIT 198,730,000
Tax Provision 5,413,000
Depreciation and Amortization 74,453,000
Capital Expenditure -7,126,000
Unlevered Free Cash Flow 230,554,036

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