DCF Tool

TRTX

TPG RE Finance Trust Inc – Trusts, Estates, and Agency Accounts
TPG RE Finance Trust, Inc. is a commercial real estate finance company that originates, acquires, and manages primarily first mortgage loans secured by institutional properties located in primary and select secondary markets in the United States. The Company is externally managed by TPG RE Finance Trust Management, L.P., a part of TPG Real Estate, which is the real estate investment platform of global alternative asset firm TPG.
Analysis Results
Intrinsic Value $6.18
Latest Price $10.35
Relative Value 67% 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 -23.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 1.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -23.1%, 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 85.0 78.0
2023 65.4 55.0
2024 50.3 38.8
2025 38.7 27.4
2026 29.7 19.3
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 433 million. This corresponds to a present value of 258 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 219 million. Adding in the terminal value gives a total present value of 477 million.

There are presently 77.2 million outstanding shares, so the intrinsic value per share is 6.18.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,215,472,000
Current Cash 0
Current Liabilities 3,753,314,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,462,158,000
Change in NCWC -4,293,000
EBIT 123,824,000
Tax Provision 1,064,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 118,587,335
Current Assets 4,908,743,000
Current Cash 0
Current Liabilities 3,442,292,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,466,451,000
Change in NCWC -36,432,000
EBIT 66,876,000
Tax Provision 305,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 30,444,000
Current Assets 5,891,799,000
Current Cash 0
Current Liabilities 4,388,916,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,502,883,000
Change in NCWC 176,382,000
EBIT 126,892,000
Tax Provision 579,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 302,695,000
Current Assets 4,526,121,000
Current Cash 0
Current Liabilities 3,199,620,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,326,501,000
Change in NCWC 126,029,000
EBIT 107,281,000
Tax Provision 340,000
Depreciation and Amortization 0
Capital Expenditure 0
Unlevered Free Cash Flow 232,970,000

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