Discounted Cash Flow (DCF) Analysis Levered
DiamondRock Hospitality Company (DRH)
$9.85
-0.13 (-1.30%)
All numbers are in Millions, Currency in USD
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 | 870 | 863.70 | 938.09 | 299.49 | 567.13 | 608.51 | 652.90 | 700.53 | 751.64 | 806.47 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 204.53 | 219.30 | 193.29 | -83.69 | -2.31 | 50.09 | 53.74 | 57.66 | 61.87 | 66.38 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -100.32 | -115.17 | -199.26 | -89.64 | -49.91 | -103.25 | -110.78 | -118.86 | -127.53 | -136.84 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 104.21 | 104.13 | -5.97 | -173.32 | -52.22 | -53.16 | -57.04 | -61.20 | -65.67 | -70.46 |
Weighted Average Cost Of Capital
| Share price | $ 9.85 |
|---|---|
| Beta | 1.632 |
| Diluted Shares Outstanding | 212.06 |
| Cost of Debt | |
| Tax Rate | -1.27 |
| After-tax Cost of Debt | 3.15% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 11.237 |
| Total Debt | 1,175.83 |
| Total Equity | 2,088.76 |
| Total Capital | 3,264.59 |
| Debt Weighting | 36.02 |
| Equity Weighting | 63.98 |
| 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 | 870 | 863.70 | 938.09 | 299.49 | 567.13 | 608.51 | 652.90 | 700.53 | 751.64 | 806.47 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 204.53 | 219.30 | 193.29 | -83.69 | -2.31 | 50.09 | 53.74 | 57.66 | 61.87 | 66.38 |
| Capital Expenditure | -100.32 | -115.17 | -199.26 | -89.64 | -49.91 | -103.25 | -110.78 | -118.86 | -127.53 | -136.84 |
| Free Cash Flow | 104.21 | 104.13 | -5.97 | -173.32 | -52.22 | -53.16 | -57.04 | -61.20 | -65.67 | -70.46 |
| WACC | ||||||||||
| PV LFCF | -41.83 | -41.43 | -41.04 | -40.65 | -40.27 | |||||
| SUM PV LFCF | -240.79 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.32 |
| Free cash flow (t + 1) | -71.87 |
| Terminal Value | -1,137.12 |
| Present Value of Terminal Value | -762.54 |
Intrinsic Value
| Enterprise Value | -1,003.33 |
|---|---|
| Net Debt | 1,137.21 |
| Equity Value | -2,140.54 |
| Shares Outstanding | 212.06 |
| Equity Value Per Share | -10.09 |