DCF Tool

PEI

Pennsylvania Real Estate Investment Trust – Other Financial Vehicles
PREIT is a publicly traded real estate investment trust that owns and manages distinctive real estate in high barrier-to-entry markets at the forefront of enabling communities through the built environment. PREIT's robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in densely-populated, high barrier-to-entry markets with tremendous opportunity to create vibrant multi-use destinations.
Analysis Results
Intrinsic Value $224.09
Latest Price $2.91
Relative Value 99% 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 -3.7%.

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 -3.7%, 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 75.4 70.6
2023 72.7 63.6
2024 70.0 57.4
2025 67.5 51.7
2026 65.0 46.6
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1360 million. This corresponds to a present value of 913 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 290 million. Adding in the terminal value gives a total present value of 1200 million.

There are presently 5.37 million outstanding shares, so the intrinsic value per share is 224.09.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 86,353,000
Current Cash 43,852,000
Current Liabilities 179,720,000
Current Debt 0
Non-Cash Working Capital (NCWC) -137,219,000
Change in NCWC 10,689,000
EBIT -2,739,000
Tax Provision 0
Depreciation and Amortization 119,964,000
Capital Expenditure -24,784,000
Unlevered Free Cash Flow 103,130,000
Current Assets 97,841,000
Current Cash 43,309,000
Current Liabilities 202,440,000
Current Debt 0
Non-Cash Working Capital (NCWC) -147,908,000
Change in NCWC 31,895,000
EBIT -47,493,000
Tax Provision 0
Depreciation and Amortization 130,880,000
Capital Expenditure -65,446,000
Unlevered Free Cash Flow 49,836,000
Current Assets 53,472,000
Current Cash 12,211,000
Current Liabilities 221,064,000
Current Debt 0
Non-Cash Working Capital (NCWC) -179,803,000
Change in NCWC -20,349,000
EBIT 24,890,000
Tax Provision 0
Depreciation and Amortization 142,763,000
Capital Expenditure -149,106,000
Unlevered Free Cash Flow -1,802,000
Current Assets 56,998,000
Current Cash 18,084,000
Current Liabilities 198,368,000
Current Debt 0
Non-Cash Working Capital (NCWC) -159,454,000
Change in NCWC -26,682,000
EBIT -68,995,000
Tax Provision 0
Depreciation and Amortization 136,198,000
Capital Expenditure -110,979,000
Unlevered Free Cash Flow -70,458,000
Current Assets 53,514,000
Current Cash 15,348,000
Current Liabilities 170,938,000
Current Debt 0
Non-Cash Working Capital (NCWC) -132,772,000
Change in NCWC -26,932,000
EBIT 76,496,000
Tax Provision 0
Depreciation and Amortization 131,498,000
Capital Expenditure -169,182,000
Unlevered Free Cash Flow 11,880,000
Current Assets 48,829,000
Current Cash 9,803,000
Current Liabilities 144,866,000
Current Debt 0
Non-Cash Working Capital (NCWC) -105,840,000
Change in NCWC 15,309,000
EBIT 98,947,000
Tax Provision 0
Depreciation and Amortization 129,407,000
Capital Expenditure -138,625,000
Unlevered Free Cash Flow 105,038,000
Current Assets 63,179,000
Current Cash 22,855,000
Current Liabilities 161,473,000
Current Debt 0
Non-Cash Working Capital (NCWC) -121,149,000
Change in NCWC -4,696,000
EBIT 81,313,000
Tax Provision 0
Depreciation and Amortization 145,254,000
Capital Expenditure -83,960,000
Unlevered Free Cash Flow 137,911,000
Current Assets 80,999,000
Current Cash 40,433,000
Current Liabilities 157,019,000
Current Debt 0
Non-Cash Working Capital (NCWC) -116,453,000
Change in NCWC -3,413,000
EBIT 78,086,000
Tax Provision 0
Depreciation and Amortization 144,600,000
Capital Expenditure -114,514,000
Unlevered Free Cash Flow 104,759,000
Current Assets 80,669,000
Current Cash 34,230,000
Current Liabilities 159,479,000
Current Debt 0
Non-Cash Working Capital (NCWC) -113,040,000
Change in NCWC 112,830,000
EBIT 91,465,000
Tax Provision 0
Depreciation and Amortization 146,065,000
Capital Expenditure -83,303,000
Unlevered Free Cash Flow 267,057,000
Current Assets 72,463,000
Current Cash 33,990,000
Current Liabilities 264,343,000
Current Debt 0
Non-Cash Working Capital (NCWC) -225,870,000
Change in NCWC -105,918,000
EBIT 96,065,000
Tax Provision 0
Depreciation and Amortization 144,155,000
Capital Expenditure -82,528,000
Unlevered Free Cash Flow 51,774,000

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