DCF Tool

UDR

UDR Inc – Other Financial Vehicles
UDR, Inc., an S&P 500 company, is a leading multifamily real estate investment trust with a demonstrated performance history of delivering superior and dependable returns by successfully managing, buying, selling, developing and redeveloping attractive real estate properties in targeted U.S. markets. As of September 30, 2020, UDR owned or had an ownership position in 51,649 apartment homes including 1,031 homes under development. For over 48 years, UDR has delivered long-term value to shareholders, the best standard of service to residents and the highest quality experience for associates.
Analysis Results
Intrinsic Value $67.54
Latest Price $47.59
Relative Value 30% 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 12.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 12.7%, 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)
2022 0.66 0.621
2023 0.743 0.659
2024 0.838 0.699
2025 0.944 0.742
2026 1.06 0.787
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 25.8 billion. This corresponds to a present value of 18.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.51 billion. Adding in the terminal value gives a total present value of 21.5 billion.

There are presently 318.0 million outstanding shares, so the intrinsic value per share is 67.54.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 55,278,000
Current Cash 967,000
Current Liabilities 396,199,000
Current Debt 0
Non-Cash Working Capital (NCWC) -341,888,000
Change in NCWC -172,134,000
EBIT 337,362,000
Tax Provision 1,439,000
Depreciation and Amortization 619,833,000
Capital Expenditure -344,553,000
Unlevered Free Cash Flow 437,519,279
Current Assets 182,163,000
Current Cash 1,409,000
Current Liabilities 350,508,000
Current Debt 0
Non-Cash Working Capital (NCWC) -169,754,000
Change in NCWC -26,178,000
EBIT 270,078,000
Tax Provision 2,545,000
Depreciation and Amortization 618,629,000
Capital Expenditure -295,353,000
Unlevered Free Cash Flow 557,564,750
Current Assets 186,941,000
Current Cash 8,106,000
Current Liabilities 322,411,000
Current Debt 0
Non-Cash Working Capital (NCWC) -143,576,000
Change in NCWC 58,914,000
EBIT 359,404,000
Tax Provision 3,838,000
Depreciation and Amortization 507,923,000
Capital Expenditure -209,748,000
Unlevered Free Cash Flow 709,711,892
Current Assets 251,150,000
Current Cash 185,216,000
Current Liabilities 268,424,000
Current Debt 0
Non-Cash Working Capital (NCWC) -202,490,000
Change in NCWC 36,357,000
EBIT 215,587,000
Tax Provision 688,000
Depreciation and Amortization 435,679,000
Capital Expenditure -267,447,000
Unlevered Free Cash Flow 419,508,566
Current Assets 41,299,000
Current Cash 2,038,000
Current Liabilities 278,108,000
Current Debt 0
Non-Cash Working Capital (NCWC) -238,847,000
Change in NCWC -6,977,000
EBIT 263,490,000
Tax Provision -240,000
Depreciation and Amortization 436,462,000
Capital Expenditure -374,693,000
Unlevered Free Cash Flow 318,282,000
Current Assets 41,896,000
Current Cash 2,112,000
Current Liabilities 271,654,000
Current Debt 0
Non-Cash Working Capital (NCWC) -231,870,000
Change in NCWC -23,360,000
EBIT 438,439,000
Tax Provision -3,774,000
Depreciation and Amortization 425,638,000
Capital Expenditure -274,570,000
Unlevered Free Cash Flow 566,147,000
Current Assets 44,234,000
Current Cash 6,742,000
Current Liabilities 246,002,000
Current Debt 0
Non-Cash Working Capital (NCWC) -208,510,000
Change in NCWC -220,000
EBIT 224,255,000
Tax Provision -3,886,000
Depreciation and Amortization 381,277,000
Capital Expenditure -220,654,000
Unlevered Free Cash Flow 384,658,000
Current Assets 51,933,000
Current Cash 15,224,000
Current Liabilities 244,999,000
Current Debt 0
Non-Cash Working Capital (NCWC) -208,290,000
Change in NCWC -60,201,000
EBIT 263,789,000
Tax Provision -15,136,000
Depreciation and Amortization 363,929,000
Capital Expenditure -353,669,000
Unlevered Free Cash Flow 213,848,000
Current Assets 136,078,000
Current Cash 30,249,000
Current Liabilities 253,918,000
Current Debt 0
Non-Cash Working Capital (NCWC) -148,089,000
Change in NCWC 26,270,000
EBIT 105,328,000
Tax Provision -8,184,000
Depreciation and Amortization 348,231,000
Capital Expenditure -441,918,000
Unlevered Free Cash Flow 37,911,000
Current Assets 99,682,000
Current Cash 12,115,000
Current Liabilities 261,926,000
Current Debt 0
Non-Cash Working Capital (NCWC) -174,359,000
Change in NCWC 48,732,000
EBIT 86,487,000
Tax Provision -21,432,000
Depreciation and Amortization 354,505,000
Capital Expenditure -399,747,000
Unlevered Free Cash Flow 89,977,000

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