MAA Intrinsic Value

MAA

Mid-America Apartment Communities, Inc. – Lessors of Residential Buildings and Dwellings

MAA is a self-administered real estate investment trust and member of the S&P 500. MAA owns and manages apartment communities throughout the Southeast, Southwest and Mid-Atlantic regions of the U.S. and is focused on delivering strong, full-cycle investment performance for shareholders.

Analysis Results

Intrinsic Value	$181.95
Latest Price	$145.96
Relative Value	20% undervalued

Share results:

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Cash Flow (Billions)

Analysis Parameters

New Ticker

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 16.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 16.8%, 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)
2023	0.734	0.684
2024	0.857	0.744
2025	1.0	0.81
2026	1.17	0.881
2027	1.37	0.959

Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 26.2 billion. This corresponds to a present value of 17.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.08 billion. Adding in the terminal value gives a total present value of 21.2 billion.

There are presently 117.0 million outstanding shares, so the intrinsic value per share is 181.95.

Financial Statements

The following data was to determine the past cash flows.

Current Assets	61,071,000
Current Cash	38,659,000
Current Liabilities	587,172,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-564,760,000
Change in NCWC	-86,907,000
EBIT	631,266,000
Tax Provision	-6,208,000
Depreciation and Amortization	544,004,000
Capital Expenditure	-567,604,000
Unlevered Free Cash Flow	520,759,000

Current Assets	130,598,000
Current Cash	54,302,000
Current Liabilities	554,149,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-477,853,000
Change in NCWC	8,304,000
EBIT	466,890,000
Tax Provision	13,637,000
Depreciation and Amortization	534,415,000
Capital Expenditure	-325,663,000
Unlevered Free Cash Flow	672,663,811

Current Assets	35,615,000
Current Cash	25,198,000
Current Liabilities	496,574,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-486,157,000
Change in NCWC	-63,960,000
EBIT	430,038,000
Tax Provision	3,327,000
Depreciation and Amortization	511,678,000
Capital Expenditure	-483,906,000
Unlevered Free Cash Flow	388,498,291

Current Assets	70,541,000
Current Cash	20,476,000
Current Liabilities	472,262,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-422,197,000
Change in NCWC	-25,761,000
EBIT	443,898,000
Tax Provision	3,696,000
Depreciation and Amortization	497,790,000
Capital Expenditure	-408,203,000
Unlevered Free Cash Flow	503,293,578

Current Assets	51,673,000
Current Cash	34,259,000
Current Liabilities	413,850,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-396,436,000
Change in NCWC	-68,993,000
EBIT	410,944,000
Tax Provision	2,611,000
Depreciation and Amortization	490,995,000
Capital Expenditure	-384,202,000
Unlevered Free Cash Flow	444,151,434

Current Assets	88,867,000
Current Cash	10,750,000
Current Liabilities	405,560,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-327,443,000
Change in NCWC	36,898,000
EBIT	376,157,000
Tax Provision	2,619,000
Depreciation and Amortization	494,540,000
Capital Expenditure	-479,955,000
Unlevered Free Cash Flow	424,769,124

Current Assets	121,800,000
Current Cash	33,536,000
Current Liabilities	452,605,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-364,341,000
Change in NCWC	-136,283,000
EBIT	315,385,000
Tax Provision	1,699,000
Depreciation and Amortization	323,283,000
Capital Expenditure	-523,163,000
Unlevered Free Cash Flow	-23,147,910

Current Assets	63,641,000
Current Cash	37,559,000
Current Liabilities	254,140,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-228,058,000
Change in NCWC	-7,448,000
EBIT	288,301,000
Tax Provision	1,673,000
Depreciation and Amortization	294,897,000
Capital Expenditure	-494,214,000
Unlevered Free Cash Flow	80,167,376

Current Assets	53,582,000
Current Cash	25,401,000
Current Liabilities	248,791,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-220,610,000
Change in NCWC	-14,429,000
EBIT	247,760,000
Tax Provision	2,050,000
Depreciation and Amortization	306,233,000
Capital Expenditure	-499,250,000
Unlevered Free Cash Flow	37,106,031

Current Assets	133,694,000
Current Cash	89,333,000
Current Liabilities	250,542,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-206,181,000
Change in NCWC	-79,592,000
EBIT	160,257,000
Tax Provision	893,000
Depreciation and Amortization	192,736,000
Capital Expenditure	-260,836,000
Unlevered Free Cash Flow	11,374,127

Current Assets	9,883,000
Current Cash	9,075,000
Current Liabilities	127,397,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-126,589,000
Change in NCWC	5,263,000
EBIT	131,275,000
Tax Provision	0
Depreciation and Amortization	132,195,000
Capital Expenditure	-139,269,000
Unlevered Free Cash Flow	129,464,000

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