DCF Tool

TRNO

Terreno Realty Corp – Offices of Real Estate Agents and Brokers
terreno realty corporation and together with its subsidiaries, the â“companyâ”) acquires, owns and operates industrial real estate in six major coastal u.s. markets: los angeles, northern new jersey/new york city, san francisco bay area, seattle, miami, and washington, d.c. all square feet, acres, occupancy and number of properties disclosed in these condensed notes to the consolidated financial statements are unaudited. as of september 30, 2020, the company owned 219 buildings aggregating approximately 13.1 million square feet, 22 improved land parcels consisting of approximately 85.0 acres and one property under redevelopment expected to contain approximately 0.2 million square feet upon completion. the company is an internally managed maryland corporation and elected to be taxed as a real estate investment trust (â“reitâ”) under sections 856 through 860 of the internal revenue code of 1986, as amended (the â“codeâ”), commencing with its taxable year ended december 31, 2010.
Analysis Results
Intrinsic Value $19.57
Latest Price $57.91
Relative Value 196% overvalued
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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 20.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 20.0%, 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 61.9 57.1
2024 74.2 63.3
2025 89.1 70.2
2026 107 77.8
2027 128 86.2
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2080 million. This corresponds to a present value of 1290 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 355 million. Adding in the terminal value gives a total present value of 1640 million.

There are presently 83.9 million outstanding shares, so the intrinsic value per share is 19.57.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 26,393,000
Current Cash 26,393,000
Current Liabilities 107,899,000
Current Debt 0
Non-Cash Working Capital (NCWC) -107,899,000
Change in NCWC -13,342,000
EBIT 108,889,000
Tax Provision 0
Depreciation and Amortization 49,492,000
Capital Expenditure -92,249,000
Unlevered Free Cash Flow 52,790,000
Current Assets 204,404,000
Current Cash 204,404,000
Current Liabilities 94,557,000
Current Debt 0
Non-Cash Working Capital (NCWC) -94,557,000
Change in NCWC -34,129,000
EBIT 87,859,000
Tax Provision 0
Depreciation and Amortization 43,001,000
Capital Expenditure -62,564,000
Unlevered Free Cash Flow 34,167,000
Current Assets 107,180,000
Current Cash 107,180,000
Current Liabilities 60,428,000
Current Debt 0
Non-Cash Working Capital (NCWC) -60,428,000
Change in NCWC -16,280,000
EBIT 68,153,000
Tax Provision 0
Depreciation and Amortization 51,295,000
Capital Expenditure -40,600,000
Unlevered Free Cash Flow 62,568,000
Current Assets 125,940,000
Current Cash 110,082,000
Current Liabilities 60,006,000
Current Debt 0
Non-Cash Working Capital (NCWC) -44,148,000
Change in NCWC -47,171,000
EBIT 58,837,000
Tax Provision 0
Depreciation and Amortization 48,697,000
Capital Expenditure -59,954,000
Unlevered Free Cash Flow 409,000
Current Assets 85,496,000
Current Cash 31,004,000
Current Liabilities 51,469,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,023,000
Change in NCWC 47,532,000
EBIT 49,226,000
Tax Provision 0
Depreciation and Amortization 44,510,000
Capital Expenditure -38,645,000
Unlevered Free Cash Flow 102,623,000
Current Assets 35,710,000
Current Cash 35,710,000
Current Liabilities 44,509,000
Current Debt 0
Non-Cash Working Capital (NCWC) -44,509,000
Change in NCWC -6,884,000
EBIT 39,049,000
Tax Provision 0
Depreciation and Amortization 35,709,000
Capital Expenditure -27,405,000
Unlevered Free Cash Flow 40,469,000
Current Assets 14,208,000
Current Cash 14,208,000
Current Liabilities 37,625,000
Current Debt 0
Non-Cash Working Capital (NCWC) -37,625,000
Change in NCWC -3,897,000
EBIT 21,246,000
Tax Provision 0
Depreciation and Amortization 33,061,000
Capital Expenditure -42,513,000
Unlevered Free Cash Flow 7,897,000
Current Assets 22,450,000
Current Cash 22,450,000
Current Liabilities 33,728,000
Current Debt 0
Non-Cash Working Capital (NCWC) -33,728,000
Change in NCWC -12,055,000
EBIT 13,655,000
Tax Provision 0
Depreciation and Amortization 34,101,000
Capital Expenditure -20,356,000
Unlevered Free Cash Flow 15,345,000
Current Assets 190,601,000
Current Cash 190,601,000
Current Liabilities 21,673,000
Current Debt 0
Non-Cash Working Capital (NCWC) -21,673,000
Change in NCWC -8,486,000
EBIT 17,308,000
Tax Provision 0
Depreciation and Amortization 18,071,000
Capital Expenditure -19,729,000
Unlevered Free Cash Flow 7,164,000
Current Assets 6,989,000
Current Cash 6,989,000
Current Liabilities 13,187,000
Current Debt 0
Non-Cash Working Capital (NCWC) -13,187,000
Change in NCWC -4,198,000
EBIT 9,968,000
Tax Provision 0
Depreciation and Amortization 12,582,000
Capital Expenditure -9,531,000
Unlevered Free Cash Flow 8,821,000
Current Assets 5,930,000
Current Cash 5,930,000
Current Liabilities 8,989,000
Current Debt 0
Non-Cash Working Capital (NCWC) -8,989,000
Change in NCWC -1,179,000
EBIT 5,463,000
Tax Provision 0
Depreciation and Amortization 9,636,000
Capital Expenditure -10,212,000
Unlevered Free Cash Flow 3,708,000

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