DCF Tool

KRG

Kite Realty Group Trust – Other Financial Vehicles
kite realty group trust is a full-service, vertically-integrated real estate investment trust (reit) engaged primarily in the ownership and operation, acquisition, development and redevelopment of high-quality neighborhood and community shopping centers in select markets in the united states. as of june 30, 2016, the company owned interests in a portfolio of 121 operating, development and redevelopment properties totaling approximately 24 million total square feet across 20 states. our strategy is to maximize the cash flow of our operating properties, successfully complete the construction and lease-up of our development portfolio and identify additional growth opportunities in the form of acquisitions and redevelopments. new investments are focused in the shopping center sector in markets where we currently operate and where we believe we can leverage our existing infrastructure and relationships to generate attractive risk-adjusted returns.
Analysis Results
Intrinsic Value $21.30
Latest Price $21.43
Relative Value 1% overvalued
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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 6.2%.

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 6.2%, 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 (million) Present value (million)
2023 208 195
2024 221 194
2025 235 192
2026 250 191
2027 265 190
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 5530 million. This corresponds to a present value of 3710 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 963 million. Adding in the terminal value gives a total present value of 4670 million.

There are presently 219.0 million outstanding shares, so the intrinsic value per share is 21.3.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 350,315,000
Current Cash 115,799,000
Current Liabilities 207,792,000
Current Debt 0
Non-Cash Working Capital (NCWC) 26,724,000
Change in NCWC 51,314,000
EBIT 65,781,000
Tax Provision 0
Depreciation and Amortization 472,969,000
Capital Expenditure -158,540,000
Unlevered Free Cash Flow 431,524,000
Current Assets 378,633,000
Current Cash 218,241,000
Current Liabilities 184,982,000
Current Debt 0
Non-Cash Working Capital (NCWC) -24,590,000
Change in NCWC -20,188,000
EBIT 33,373,000
Tax Provision 0
Depreciation and Amortization 203,142,000
Capital Expenditure -57,313,000
Unlevered Free Cash Flow 159,014,000
Current Assets 116,715,000
Current Cash 43,648,000
Current Liabilities 77,469,000
Current Debt 0
Non-Cash Working Capital (NCWC) -4,402,000
Change in NCWC -18,896,000
EBIT 28,593,000
Tax Provision 0
Depreciation and Amortization 130,783,000
Capital Expenditure -38,266,000
Unlevered Free Cash Flow 102,214,000
Current Assets 115,647,000
Current Cash 31,336,000
Current Liabilities 69,817,000
Current Debt 0
Non-Cash Working Capital (NCWC) 14,494,000
Change in NCWC 13,744,000
EBIT 69,881,000
Tax Provision 0
Depreciation and Amortization 134,860,000
Capital Expenditure -53,278,000
Unlevered Free Cash Flow 165,207,000
Current Assets 122,060,000
Current Cash 35,376,000
Current Liabilities 85,934,000
Current Debt 0
Non-Cash Working Capital (NCWC) 750,000
Change in NCWC -3,555,000
EBIT 87,689,000
Tax Provision -227,000
Depreciation and Amortization 156,107,000
Capital Expenditure -59,304,000
Unlevered Free Cash Flow 180,937,000
Current Assets 106,869,000
Current Cash 24,082,000
Current Liabilities 78,482,000
Current Debt 0
Non-Cash Working Capital (NCWC) 4,305,000
Change in NCWC 13,118,000
EBIT 72,156,000
Tax Provision -100,000
Depreciation and Amortization 174,625,000
Capital Expenditure -70,526,000
Unlevered Free Cash Flow 189,373,000
Current Assets 91,725,000
Current Cash 19,874,000
Current Liabilities 80,664,000
Current Debt 0
Non-Cash Working Capital (NCWC) -8,813,000
Change in NCWC -886,000
EBIT 65,423,000
Tax Provision 814,000
Depreciation and Amortization 179,084,000
Capital Expenditure -94,319,000
Unlevered Free Cash Flow 135,751,281
Current Assets 107,309,000
Current Cash 33,880,000
Current Liabilities 81,356,000
Current Debt 0
Non-Cash Working Capital (NCWC) -7,927,000
Change in NCWC -5,892,000
EBIT 68,557,000
Tax Provision 186,000
Depreciation and Amortization 170,521,000
Capital Expenditure -92,564,000
Unlevered Free Cash Flow 140,189,756
Current Assets 116,941,000
Current Cash 43,826,000
Current Liabilities 75,150,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,035,000
Change in NCWC 22,558,739
EBIT 29,329,000
Tax Provision 24,000
Depreciation and Amortization 123,862,000
Capital Expenditure -94,553,000
Unlevered Free Cash Flow 81,196,739
Current Assets 63,061,440
Current Cash 18,134,320
Current Liabilities 69,520,859
Current Debt 0
Non-Cash Working Capital (NCWC) -24,593,739
Change in NCWC -2,245,330
EBIT 28,426,270
Tax Provision 262,404
Depreciation and Amortization 57,757,063
Capital Expenditure -112,580,651
Unlevered Free Cash Flow -28,642,648
Current Assets 53,769,302
Current Cash 12,482,701
Current Liabilities 63,635,010
Current Debt 0
Non-Cash Working Capital (NCWC) -22,348,409
Change in NCWC -8,440,529
EBIT 24,234,693
Tax Provision -105,984
Depreciation and Amortization 43,768,649
Capital Expenditure -114,153,351
Unlevered Free Cash Flow -54,590,538

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