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DCF Valuation
Base-case fair value
$14.61
Intrinsic $19.48 · 25% MOS
Current price: $15.67
Base-case summary
Our base-case DCF for Apple Hospitality REIT, Inc. (APLE) projects 10 years of free cash flow growth at 6.6% for years 1–5 and 3.3% for years 6–10, anchored to 6.6% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $274M in trailing free cash flow, this produces an intrinsic value of $19.48 per share. A 25% safety margin gives a fair value of $14.61, suggesting the stock is currently 7% overvalued against the $15.67 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$274M
Cash & equivalents
$8M
Total debt
$1.7B
Shares outstanding
236M