DCF Tool


Paramount Group Inc – Other Financial Vehicles
Headquartered in New York City, Paramount Group, Inc. is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York City and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.
Analysis Results
Intrinsic Value $24.78
Latest Price $4.42
Relative Value 82% undervalued
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Cash Flow (Millions)
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 -6.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -6.6%, 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 238 230
2024 222 208
2025 207 187
2026 194 169
2027 181 153
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 5430 million. This corresponds to a present value of 4430 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 947 million. Adding in the terminal value gives a total present value of 5380 million.

There are presently 217.0 million outstanding shares, so the intrinsic value per share is 24.78.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 820,021,000
Current Cash 408,905,000
Current Liabilities 141,202,000
Current Debt 0
Non-Cash Working Capital (NCWC) 269,914,000
Change in NCWC 49,918,000
EBIT 113,758,000
Tax Provision 3,265,000
Depreciation and Amortization 230,769,000
Capital Expenditure -125,805,000
Unlevered Free Cash Flow 268,640,000
Current Assets 877,983,000
Current Cash 524,900,000
Current Liabilities 133,087,000
Current Debt 0
Non-Cash Working Capital (NCWC) 219,996,000
Change in NCWC -39,842,000
EBIT 144,699,000
Tax Provision 3,643,000
Depreciation and Amortization 229,417,000
Capital Expenditure -112,001,000
Unlevered Free Cash Flow 129,825,006
Current Assets 813,065,000
Current Cash 434,530,000
Current Liabilities 118,697,000
Current Debt 0
Non-Cash Working Capital (NCWC) 259,838,000
Change in NCWC 15,234,000
EBIT 127,090,000
Tax Provision 1,493,000
Depreciation and Amortization 231,156,000
Capital Expenditure -89,463,000
Unlevered Free Cash Flow 284,017,000
Current Assets 693,430,000
Current Cash 306,215,000
Current Liabilities 142,611,000
Current Debt 0
Non-Cash Working Capital (NCWC) 244,604,000
Change in NCWC 81,552,000
EBIT 170,847,000
Tax Provision 312,000
Depreciation and Amortization 259,338,000
Capital Expenditure -103,916,000
Unlevered Free Cash Flow 407,821,000
Current Assets 675,601,000
Current Cash 362,313,000
Current Liabilities 150,236,000
Current Debt 0
Non-Cash Working Capital (NCWC) 163,052,000
Change in NCWC 64,240,000
EBIT 171,493,000
Tax Provision 3,139,000
Depreciation and Amortization 242,166,000
Capital Expenditure -137,915,000
Unlevered Free Cash Flow 315,661,004
Current Assets 517,372,000
Current Cash 248,420,000
Current Liabilities 170,140,000
Current Debt 0
Non-Cash Working Capital (NCWC) 98,812,000
Change in NCWC 69,284,000
EBIT 253,631,000
Tax Provision 5,177,000
Depreciation and Amortization 246,514,000
Capital Expenditure -86,434,000
Unlevered Free Cash Flow 471,308,194
Current Assets 393,678,000
Current Cash 185,358,000
Current Liabilities 178,792,000
Current Debt 0
Non-Cash Working Capital (NCWC) 29,528,000
Change in NCWC 148,101,000
EBIT 103,558,000
Tax Provision 1,785,000
Depreciation and Amortization 259,914,000
Capital Expenditure -132,686,000
Unlevered Free Cash Flow 330,923,577
Current Assets 295,864,000
Current Cash 165,405,000
Current Liabilities 249,032,000
Current Debt 0
Non-Cash Working Capital (NCWC) -118,573,000
Change in NCWC 124,707,000
EBIT 115,444,000
Tax Provision 2,566,000
Depreciation and Amortization 284,707,000
Capital Expenditure -107,859,000
Unlevered Free Cash Flow 404,504,617

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