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Ares Commercial Real Estate Corp (NYSE:ACRE)

12.9 USD +0.51 USD ( +4.12% )
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Ares Commercial Real Estate Corp
NYSE:ACRE
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DCF Value

Estimated DCF Value of one ACRE stock under the base case scenario is 24.29 USD. Compared to the current market price of 12.9 USD, the stock is Undervalued by 47%.

Estimated DCF Value of one NYSE:ACRE stock is 24.29 USD. Compared to the current market price of 12.9 USD, the stock is Undervalued by 47% .

DCF valuation is one of two methods of placing a monetary value on a company; the other is Relative Valuation method. We use a combination of these two methods to calculate the Intrinsic Value of stock as accurately as possible.

Discount Rate
8.11%
Terminal Growth
0%
Growth Period
5 Years
Discount Rate
8.11%
Terminal Growth
0%
Growth Period
5 Years

You can change any inputs, such as future revenue, using Present Value Calculation block.

ACRE DCF Value
Base Case
24.29 USD
Undervaluation 47%
DCF Value
Price
Worst Case
Base Case
Best Case
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Ares Commercial Real Estate Corp Competitors:
DCF Valuation
BXMT
Blackstone Mortgage Trust Inc
BRSP
Brightspire Capital Inc
ARI
Apollo Commercial Real Estate Finance Inc
LOAN
Manhattan Bridge Capital Inc
NREF
Nexpoint Real Estate Finance Inc
EARN
Ellington Residential Mortgage REIT
HASI
Hannon Armstrong Sustainable Infrastructure Capital Inc
DX
Dynex Capital Inc

DCF Value Calculation

Capital Structure
From Present Value to DCF Value

Present Value 1.3B USD
Equity Value 1.3B USD
/ Shares Outstanding 54.4M
ACRE DCF Value 24.29 USD
Undervalued by 47%

To view the process of calculating the Present Value of Ares Commercial Real Estate Corp' future free cash flow, see the Present Value Calculation block.

Present Value Calculation

Discounted Cash Flow Model
Present Value of Free Cash Flow

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To view the process of deriving the DCF Value of one share from the estimated Present Value, see the DCF Value Calculation block.

DCF Model Financials
Financials used in the DCF Model

Sensitivity Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Analyze the possible values of ACRE stock DCF Value given various model inputs such as Revenue Growth, Operating Margin, and Discount Rate.

See Also

Similar Stocks

ACRE Stock DCF Valuation FAQ

What is the DCF value of one ACRE stock?

Estimated DCF Value of one ACRE stock under the base case scenario is 24.29 USD. Compared to the current market price of 12.9 USD, the stock is Undervalued by 47%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock intrinsic values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Using the DCF Operating Model we project Ares Commercial Real Estate Corp's future free cash flow and discount it at a selected discount rate to calculate its Present Value (1.3B USD).

2. DCF Value Calculation. We use the company's capital structure to calculate the total Equity Value based on the previously computed Present Value of the free cash flow. Dividing the Equity Value by the number of shares outstanding gives us the DCF Value of 24.29 USD per one ACRE share.