DCF Tool

HTA

Healthcare Realty Trust Inc – Other Financial Vehicles
Healthcare Trust of America, Inc. is the largest dedicated owner and operator of medical office buildings in the United States, comprising approximately 25.4 million square feet of GLA, with $7.5 billion invested primarily in medical office buildings as of December 31, 2020. HTA provides real estate infrastructure for the integrated delivery of healthcare services in highly-desirable locations. Investments are targeted to build critical mass in 20 to 25 leading gateway markets that generally have leading university and medical institutions, which translates to superior demographics, high-quality graduates, intellectual talent and job growth. The strategic markets HTA invests in support a strong, long-term demand for quality medical office space. HTA utilizes an integrated asset management platform consisting of on-site leasing, property management, engineering and building services, and development capabilities to create complete, state of the art facilities in each market. This drives efficiencies, strong tenant and health system relationships, and strategic partnerships that result in high levels of tenant retention, rental growth and long-term value creation. Headquartered in Scottsdale, Arizona, HTA has developed a national brand with dedicated relationships at the local level.
Analysis Results
Intrinsic Value $89.91
Latest Price $24.37
Relative Value 73% 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 12.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 12.5%, 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 497 474
2023 560 508
2024 630 544
2025 709 583
2026 798 625
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 23900 million. This corresponds to a present value of 17900 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2730 million. Adding in the terminal value gives a total present value of 20600 million.

There are presently 229.0 million outstanding shares, so the intrinsic value per share is 89.91.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 371,010,000
Current Cash 52,353,000
Current Liabilities 289,634,000
Current Debt 0
Non-Cash Working Capital (NCWC) 29,023,000
Change in NCWC 82,927,000
EBIT 177,877,000
Tax Provision 0
Depreciation and Amortization 283,300,000
Capital Expenditure -97,155,000
Unlevered Free Cash Flow 446,949,000
Current Assets 359,371,000
Current Cash 115,407,000
Current Liabilities 297,868,000
Current Debt 0
Non-Cash Working Capital (NCWC) -53,904,000
Change in NCWC -74,930,000
EBIT 165,956,000
Tax Provision 0
Depreciation and Amortization 283,039,000
Capital Expenditure -74,743,000
Unlevered Free Cash Flow 299,322,000
Current Assets 274,640,000
Current Cash 32,713,000
Current Liabilities 220,901,000
Current Debt 0
Non-Cash Working Capital (NCWC) 21,026,000
Change in NCWC 71,722,000
EBIT 148,349,000
Tax Provision 0
Depreciation and Amortization 280,969,000
Capital Expenditure -91,544,000
Unlevered Free Cash Flow 409,496,000
Current Assets 320,165,000
Current Cash 126,221,000
Current Liabilities 244,640,000
Current Debt 0
Non-Cash Working Capital (NCWC) -50,696,000
Change in NCWC -13,341,000
EBIT 161,715,000
Tax Provision 0
Depreciation and Amortization 271,441,000
Capital Expenditure -77,870,000
Unlevered Free Cash Flow 341,945,000
Current Assets 293,164,000
Current Cash 100,356,000
Current Liabilities 230,163,000
Current Debt 0
Non-Cash Working Capital (NCWC) -37,355,000
Change in NCWC -42,808,000
EBIT 138,351,000
Tax Provision 0
Depreciation and Amortization 239,044,000
Capital Expenditure -64,833,000
Unlevered Free Cash Flow 269,754,000
Current Assets 173,497,000
Current Cash 11,231,000
Current Liabilities 156,813,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,453,000
Change in NCWC 14,903,000
EBIT 105,000,000
Tax Provision 0
Depreciation and Amortization 175,285,000
Capital Expenditure -42,994,000
Unlevered Free Cash Flow 252,194,000
Current Assets 147,218,000
Current Cash 13,070,000
Current Liabilities 143,598,000
Current Debt 0
Non-Cash Working Capital (NCWC) -9,450,000
Change in NCWC -37,738,000
EBIT 96,165,000
Tax Provision 0
Depreciation and Amortization 151,614,000
Capital Expenditure -29,270,000
Unlevered Free Cash Flow 180,771,000
Current Assets 175,318,000
Current Cash 10,413,000
Current Liabilities 136,617,000
Current Debt 0
Non-Cash Working Capital (NCWC) 28,288,000
Change in NCWC -4,398,000
EBIT 83,073,000
Tax Provision 0
Depreciation and Amortization 137,188,000
Capital Expenditure -29,037,000
Unlevered Free Cash Flow 186,826,000
Current Assets 174,052,000
Current Cash 18,081,000
Current Liabilities 123,285,000
Current Debt 0
Non-Cash Working Capital (NCWC) 32,686,000
Change in NCWC 7,356,000
EBIT 70,506,000
Tax Provision 0
Depreciation and Amortization 119,904,000
Capital Expenditure -25,382,000
Unlevered Free Cash Flow 172,384,000

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