Using an unlevered Free Cash Flow to Firm (FCFF) model, we project BXP, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -0.8% to 5.7% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 175, DPO 125, DIO 60). At a 5.7% WACC with mid-year discounting, the terminal value (78% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 14.9x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $154.30 per share, suggesting BXP is undervalued by 191.7% at the current price of $52.90.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 1,395 | 1,437 | 1,468 | 1,533 | 1,621 | 1,661 |
| (−) Net Interest | 579 | 596 | 609 | 636 | 672 | 689 |
| (+) D&A | 380 | 456 | 457 | 444 | 441 | 452 |
| EBITDA | 2,354 | 2,488 | 2,534 | 2,613 | 2,734 | 2,802 |
| (−) Tax | 0 | 0 | 0 | 0 | 0 | — |
| (−) CapEx | 395 | 406 | 415 | 434 | 458 | — |
| (−) ΔWC | 259 | 42 | 32 | 66 | 89 | — |
| Free Cash Flow (FCF) | 1,700 | 2,040 | 2,087 | 2,113 | 2,186 | — |
| Peers' EBITDA Multiple | 14.9x | |||||
| Terminal Value | 41,697 | |||||
| WACC / Discount Rate | 5.69% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 1,653 | 1,877 | 1,817 | 1,741 | 1,704 | 31,612 |
| Enterprise Value | 40,404 | |||||
| Projection Period | 8,792 | 21.8% | ||||
| Terminal Value | 31,612 | 78.2% | ||||
| (−) Current Net Debt | 15,881 | |||||
| Equity Value | 24,523 | |||||
| (÷) Outstanding Shares | 159M | |||||
| Fair Price | $154 | +191.8% | ||||
| WACC \ EV/EBITDA Exit Multiple | 10.9x | 12.9x | 14.9x | 16.9x | 18.9x |
|---|---|---|---|---|---|
| 3.7% | $118 | $148 | $177 | $206 | $236 |
| 4.7% | $109 | $137 | $165 | $193 | $221 |
| 5.7% | $101 | $128 | $154 | $181 | $208 |
| 6.7% | $93 | $118 | $144 | $169 | $195 |
| 7.7% | $85 | $110 | $134 | $158 | $183 |
Current price: $52.90. Green = undervalued, Red = overvalued.
Based on default parameters
This is an unlevered Free Cash Flow to Firm (FCFF) model with a 5-year projection period. Revenue, expenses, D&A, and working capital are projected using the same line-by-line approach as the Growth Exit models. The key difference is the terminal value methodology: instead of assuming perpetual cash flow growth, the terminal value is calculated by applying the industry peer median EV/EBITDA multiple to the projected Year 6 EBITDA.
Using a peer exit multiple anchors the terminal value to how the market currently prices comparable companies, rather than relying on a theoretical perpetual growth assumption. This approach captures relative valuation dynamics and is particularly useful when a company is expected to converge toward industry-average profitability over time. The sensitivity matrix shows how fair value changes across different WACC and EV/EBITDA multiple scenarios.