Below please find a table outlining a discounted cash flow forecast for ESBA, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Empire State Realty OP LP ranked in the 9th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 92.83%. In terms of the factors that were most noteworthy in this DCF analysis for ESBA, they are:
Empire State Realty OP LP's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
The weighted average cost of capital for the company is 10. This value is greater than 73.87% stocks in the Real Estate sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Empire State Realty OP LP? See ESRT, HGSH, BRX, CDR, and FSV.
While large mega-cap stocks tend to get the most news coverage, smaller companies can be some of the best long-term investment opportunities. Small cap stocks tend to have higher volatility than their larger counterparts, but also can have the most compelling growth potential. With that in mind, here's why Empire State Realty Trust (NYSE: ESRT), Green Dot (NYSE: GDOT), and EPR Properties (NYSE: EPR) could be smart additions to your portfolio during Summer 2020.
The Empire State Building has been a symbol of America's economic might for almost 90 years. A week into New York's second phase of post-lockdown re-opening, dozens of the companies with office space in one of the world's most famous buildings are trying to figure out when, how - even whether - to come back. The June 22 reopening allowed office buildings to invite tenants back, as long as maximum occupancy stayed below 50%.
It's been a roller coaster ride in the stock markets in 2020. After reaching new all-time highs in February, the market rapidly plunged by nearly 40% by late March as the COVID-19 pandemic brought the world economy to a near-standstill, and has since rebounded to where the S&P 500 is now back to within 15% of the highs. Three in particular that I own in my personal stock portfolio are Ryman Hospitality Properties (NYSE: RHP), Bank of America (NYSE: BAC), and Empire State Realty Trust (NYSE: ESRT), which are down by 60%, 31%, and 51% so far in 2020, respectively.