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Apple Hospitality REIT (FRA:48T) Intrinsic Value: Projected FCF : €18.67 (As of Jun. 09, 2024)


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What is Apple Hospitality REIT Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-06-09), Apple Hospitality REIT's Intrinsic Value: Projected FCF is €18.67. The stock price of Apple Hospitality REIT is €13.11. Therefore, Apple Hospitality REIT's Price-to-Intrinsic-Value-Projected-FCF of today is 0.7.

The historical rank and industry rank for Apple Hospitality REIT's Intrinsic Value: Projected FCF or its related term are showing as below:

FRA:48T' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.41   Med: 0.73   Max: 0.97
Current: 0.7

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Apple Hospitality REIT was 0.97. The lowest was 0.41. And the median was 0.73.

FRA:48T's Price-to-Projected-FCF is ranked worse than
53.19% of 549 companies
in the REITs industry
Industry Median: 0.65 vs FRA:48T: 0.70

Apple Hospitality REIT Intrinsic Value: Projected FCF Historical Data

The historical data trend for Apple Hospitality REIT's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Apple Hospitality REIT Intrinsic Value: Projected FCF Chart

Apple Hospitality REIT Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only - 16.98 18.22 19.58 19.72

Apple Hospitality REIT Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.33 19.43 20.40 19.72 18.74

Competitive Comparison of Apple Hospitality REIT's Intrinsic Value: Projected FCF

For the REIT - Hotel & Motel subindustry, Apple Hospitality REIT's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Apple Hospitality REIT's Price-to-Projected-FCF Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Apple Hospitality REIT's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Apple Hospitality REIT's Price-to-Projected-FCF falls into.



Apple Hospitality REIT Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Apple Hospitality REIT's Free Cash Flow(6 year avg) = €213.33.

Apple Hospitality REIT's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Mar24)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*213.33152+3067.558*0.8)/242.408
=18.50

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Apple Hospitality REIT  (FRA:48T) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Apple Hospitality REIT's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=13.11/18.502019227507
=0.71

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Apple Hospitality REIT Intrinsic Value: Projected FCF Related Terms

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Apple Hospitality REIT (FRA:48T) Business Description

Industry
Traded in Other Exchanges
Address
814 East Main Street, Richmond, VA, USA, 23219
Apple Hospitality REIT Inc is a real estate investment trust that invests in income-producing real estate, majorly in the lodging sector, in the United States. It chiefly invests in upscale service hotels. All of the company's hotels operate under the Marriott or Hilton brands. Apple Hospitality has wholly owned taxable REIT subsidiaries, which lease all of the company's hotels from wholly owned qualified REIT subsidiaries. These hotels are managed under separate agreements with various hotel management companies that are unaffiliated with Apple Hospitality. The company derives its income from hotel revenue, its sole segment.

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