DCF Tool

STAG

STAG Industrial Inc – Other Financial Vehicles
stag industrial, inc. (nyse: stag) is a real estate investment trust (reit) focused on the acquisition and operation of single-tenant, industrial properties throughout the united states. stag seeks to identify relative value across all markets, industries, and tenants through the principled application of our proprietary risk assessment model. we target the acquisition of individual single-tenant industrial properties throughout the united states with purchase prices ranging from $5 million to $50 million. for additional information, please visit the company’s website at www.stagindustrial.com.
Analysis Results
Intrinsic Value $95.88
Latest Price $34.74
Relative Value 64% undervalued
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Cash Flow (Billions)
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 21.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 21.7%, 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 (billion) Present value (billion)
2023 0.53 0.493
2024 0.645 0.558
2025 0.785 0.632
2026 0.955 0.716
2027 1.16 0.81
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 21.6 billion. This corresponds to a present value of 14.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.21 billion. Adding in the terminal value gives a total present value of 17.2 billion.

There are presently 180.0 million outstanding shares, so the intrinsic value per share is 95.88.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 286,254,000
Current Cash 25,884,000
Current Liabilities 192,927,000
Current Debt 0
Non-Cash Working Capital (NCWC) 67,443,000
Change in NCWC 74,695,000
EBIT 205,283,000
Tax Provision 0
Depreciation and Amortization 275,040,000
Capital Expenditure -117,328,000
Unlevered Free Cash Flow 437,690,000
Current Assets 182,969,000
Current Cash 18,981,000
Current Liabilities 171,240,000
Current Debt 0
Non-Cash Working Capital (NCWC) -7,252,000
Change in NCWC 16,558,000
EBIT 163,967,000
Tax Provision 0
Depreciation and Amortization 238,699,000
Capital Expenditure -46,134,000
Unlevered Free Cash Flow 373,090,000
Current Assets 141,606,000
Current Cash 15,666,000
Current Liabilities 149,750,000
Current Debt 0
Non-Cash Working Capital (NCWC) -23,810,000
Change in NCWC -29,564,000
EBIT 137,213,000
Tax Provision 0
Depreciation and Amortization 214,738,000
Capital Expenditure -56,191,000
Unlevered Free Cash Flow 266,196,000
Current Assets 107,990,000
Current Cash 9,041,000
Current Liabilities 93,195,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,754,000
Change in NCWC -15,695,000
EBIT 107,590,000
Tax Provision 0
Depreciation and Amortization 185,450,000
Capital Expenditure -65,044,000
Unlevered Free Cash Flow 212,301,000
Current Assets 110,831,000
Current Cash 7,968,000
Current Liabilities 81,414,000
Current Debt 0
Non-Cash Working Capital (NCWC) 21,449,000
Change in NCWC 26,978,000
EBIT 79,026,000
Tax Provision 0
Depreciation and Amortization 167,617,000
Capital Expenditure -794,000
Unlevered Free Cash Flow 272,827,000
Current Assets 93,174,000
Current Cash 24,562,000
Current Liabilities 74,141,000
Current Debt 0
Non-Cash Working Capital (NCWC) -5,529,000
Change in NCWC -2,345,000
EBIT 51,984,000
Tax Provision 0
Depreciation and Amortization 150,881,000
Capital Expenditure -45,790,000
Unlevered Free Cash Flow 154,730,000
Current Assets 69,320,000
Current Cash 12,192,000
Current Liabilities 60,312,000
Current Debt 0
Non-Cash Working Capital (NCWC) -3,184,000
Change in NCWC -11,396,000
EBIT 36,784,000
Tax Provision 0
Depreciation and Amortization 125,444,000
Capital Expenditure -30,485,000
Unlevered Free Cash Flow 120,347,000
Current Assets 68,747,000
Current Cash 12,011,000
Current Liabilities 48,524,000
Current Debt 0
Non-Cash Working Capital (NCWC) 8,212,000
Change in NCWC 1,246,000
EBIT 28,906,000
Tax Provision 0
Depreciation and Amortization 112,545,000
Capital Expenditure -16,329,000
Unlevered Free Cash Flow 126,368,000
Current Assets 71,237,000
Current Cash 23,878,000
Current Liabilities 40,393,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,966,000
Change in NCWC 12,379,000
EBIT 20,782,000
Tax Provision 0
Depreciation and Amortization 88,057,000
Capital Expenditure -345,281,000
Unlevered Free Cash Flow -224,063,000
Current Assets 33,989,000
Current Cash 6,690,000
Current Liabilities 32,712,000
Current Debt 0
Non-Cash Working Capital (NCWC) -5,413,000
Change in NCWC 6,475,000
EBIT 19,930,000
Tax Provision 0
Depreciation and Amortization 70,597,000
Capital Expenditure -261,208,000
Unlevered Free Cash Flow -164,206,000

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