Discounted Cash Flow (DCF) Analysis Levered

American Homes 4 Rent (AMH-PF)

$25.14

+0.03 (+-%)
All numbers are in Millions, Currency in USD
Stock DCF: 42.06 | 25.14 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 960.401,072.861,143.381,182.841,303.881,408.091,520.621,642.141,773.381,915.10
Revenue (%)
Operating Cash Flow 385.96410.88457.89474.10595.20575.24621.21670.86724.47782.37
Operating Cash Flow (%)
Capital Expenditure -37.54-54.46-71.48-104.82-52.13-79.13-85.45-92.28-99.65-107.62
Capital Expenditure (%)
Free Cash Flow 348.42356.42386.41369.28543.07496.11535.76578.58624.82674.75

Weighted Average Cost Of Capital

Share price $ 25.14
Beta 0.610
Diluted Shares Outstanding 349.53
Cost of Debt
Tax Rate 10.20
After-tax Cost of Debt 2.66%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.477
Total Debt 3,880.48
Total Equity 8,787.23
Total Capital 12,667.71
Debt Weighting 30.63
Equity Weighting 69.37
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 960.401,072.861,143.381,182.841,303.881,408.091,520.621,642.141,773.381,915.10
Operating Cash Flow 385.96410.88457.89474.10595.20575.24621.21670.86724.47782.37
Capital Expenditure -37.54-54.46-71.48-104.82-52.13-79.13-85.45-92.28-99.65-107.62
Free Cash Flow 348.42356.42386.41369.28543.07496.11535.76578.58624.82674.75
WACC
PV LFCF 471.10483.09495.40508.01520.95
SUM PV LFCF 2,478.54

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.31
Free cash flow (t + 1) 688.24
Terminal Value 20,792.88
Present Value of Terminal Value 16,053.38

Intrinsic Value

Enterprise Value 18,531.92
Net Debt 3,832.28
Equity Value 14,699.64
Shares Outstanding 349.53
Equity Value Per Share 42.06