DCF Tool

OPI

Office Properties Income Trust – Lessors of Nonresidential Buildings (except Miniwarehouses)
Office Properties Income Trust is a REIT focused on owning, operating and leasing buildings primarily leased to single tenants and those with high credit quality characteristics like government entities.
Analysis Results
Intrinsic Value $247.04
Latest Price $14.05
Relative Value 94% 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 12.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 12.4%, 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 292 277
2023 328 297
2024 368 318
2025 414 340
2026 466 363
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 14000 million. This corresponds to a present value of 10400 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1600 million. Adding in the terminal value gives a total present value of 12000 million.

There are presently 48.5 million outstanding shares, so the intrinsic value per share is 247.04.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 249,795,000
Current Cash 83,026,000
Current Liabilities 149,396,000
Current Debt 0
Non-Cash Working Capital (NCWC) 17,373,000
Change in NCWC -4,425,000
EBIT 102,583,000
Tax Provision 251,000
Depreciation and Amortization 237,092,000
Capital Expenditure -100,141,000
Unlevered Free Cash Flow 235,109,000
Current Assets 186,437,000
Current Cash 42,045,000
Current Liabilities 122,594,000
Current Debt 0
Non-Cash Working Capital (NCWC) 21,798,000
Change in NCWC 30,324,000
EBIT 110,517,000
Tax Provision 377,000
Depreciation and Amortization 251,020,000
Capital Expenditure -81,762,000
Unlevered Free Cash Flow 304,193,272
Current Assets 217,407,000
Current Cash 93,744,000
Current Liabilities 132,189,000
Current Debt 0
Non-Cash Working Capital (NCWC) -8,526,000
Change in NCWC 74,174,000
EBIT 124,888,000
Tax Provision 778,000
Depreciation and Amortization 287,378,000
Capital Expenditure -62,676,000
Unlevered Free Cash Flow 420,641,097
Current Assets 133,072,000
Current Cash 35,349,000
Current Liabilities 180,423,000
Current Debt 0
Non-Cash Working Capital (NCWC) -82,700,000
Change in NCWC -72,807,000
EBIT 56,630,000
Tax Provision 117,000
Depreciation and Amortization 161,060,000
Capital Expenditure -47,500,000
Unlevered Free Cash Flow 97,383,000
Current Assets 100,975,000
Current Cash 16,569,000
Current Liabilities 94,299,000
Current Debt 0
Non-Cash Working Capital (NCWC) -9,893,000
Change in NCWC -21,891,000
EBIT 84,933,000
Tax Provision 101,000
Depreciation and Amortization 108,601,000
Capital Expenditure -45,940,000
Unlevered Free Cash Flow 124,999,347
Current Assets 99,478,000
Current Cash 29,941,000
Current Liabilities 57,539,000
Current Debt 0
Non-Cash Working Capital (NCWC) 11,998,000
Change in NCWC -4,016,000
EBIT 101,606,000
Tax Provision 101,000
Depreciation and Amortization 71,492,000
Capital Expenditure -32,999,000
Unlevered Free Cash Flow 135,905,894
Current Assets 78,228,000
Current Cash 8,785,000
Current Liabilities 53,429,000
Current Debt 0
Non-Cash Working Capital (NCWC) 16,014,000
Change in NCWC -15,825,000
EBIT 84,084,000
Tax Provision 86,000
Depreciation and Amortization 67,611,000
Capital Expenditure -19,163,000
Unlevered Free Cash Flow 116,707,000
Current Assets 74,262,000
Current Cash 13,791,000
Current Liabilities 28,632,000
Current Debt 0
Non-Cash Working Capital (NCWC) 31,839,000
Change in NCWC 8,650,000
EBIT 87,232,000
Tax Provision 117,000
Depreciation and Amortization 65,384,000
Capital Expenditure -21,635,000
Unlevered Free Cash Flow 139,450,841
Current Assets 56,542,000
Current Cash 7,663,000
Current Liabilities 25,690,000
Current Debt 0
Non-Cash Working Capital (NCWC) 23,189,000
Change in NCWC 3,638,000
EBIT 81,689,000
Tax Provision 133,000
Depreciation and Amortization 56,302,000
Capital Expenditure -23,252,000
Unlevered Free Cash Flow 118,178,570
Current Assets 47,733,000
Current Cash 5,255,000
Current Liabilities 22,927,000
Current Debt 0
Non-Cash Working Capital (NCWC) 19,551,000
Change in NCWC 6,689,000
EBIT 67,476,000
Tax Provision 159,000
Depreciation and Amortization 51,855,000
Capital Expenditure -18,841,000
Unlevered Free Cash Flow 106,964,935

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