Discounted Cash Flow (DCF) Analysis Levered

Beazer Homes USA, Inc. (BZH)

$31.33

+1.06 (+3.50%)
All numbers are in Millions, Currency in USD
Stock DCF: 27.23 | 31.33 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 2,087.742,127.082,140.302,316.992,206.792,239.912,273.542,307.672,342.312,377.48
Revenue (%)
Operating Cash Flow 113.64289.0931.6681.07178.06143.72145.87148.06150.29152.54
Operating Cash Flow (%)
Capital Expenditure -21.36-10.64-14.65-15.05-20.33-16.93-17.18-17.44-17.70-17.97
Capital Expenditure (%)
Free Cash Flow 92.28278.4517.0166.03157.72126.79128.69130.63132.59134.58

Weighted Average Cost Of Capital

Share price $ 31.33
Beta 2.263
Diluted Shares Outstanding 30.75
Cost of Debt
Tax Rate 13.16
After-tax Cost of Debt 5.97%
Risk-Free Rate
Market Risk Premium
Cost of Equity 14.947
Total Debt 997
Total Equity 963.30
Total Capital 1,960.30
Debt Weighting 50.86
Equity Weighting 49.14
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 2,087.742,127.082,140.302,316.992,206.792,239.912,273.542,307.672,342.312,377.48
Operating Cash Flow 113.64289.0931.6681.07178.06143.72145.87148.06150.29152.54
Capital Expenditure -21.36-10.64-14.65-15.05-20.33-16.93-17.18-17.44-17.70-17.97
Free Cash Flow 92.28278.4517.0166.03157.72126.79128.69130.63132.59134.58
WACC
PV LFCF 114.87105.6397.1389.3282.13
SUM PV LFCF 489.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.38
Free cash flow (t + 1) 137.27
Terminal Value 1,638.05
Present Value of Terminal Value 999.71

Intrinsic Value

Enterprise Value 1,488.79
Net Debt 651.41
Equity Value 837.38
Shares Outstanding 30.75
Equity Value Per Share 27.23