Discounted Cash Flow (DCF) Analysis Levered
Equity Residential (EQR)
$59.3
-0.17 (-0.28%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 2,701.07 | 2,571.70 | 2,464 | 2,735.18 | 2,753.67 | 2,772.29 | 2,791.03 | 2,809.89 | 2,828.89 | 2,848.01 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,456.98 | 1,265.54 | 1,260.18 | 1,454.76 | 966.36 | 1,344.98 | 1,354.07 | 1,363.22 | 1,372.44 | 1,381.72 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -190.26 | -166.24 | -168.65 | -232.24 | -198.56 | -199.91 | -201.26 | -202.62 | -203.99 | -205.37 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,266.72 | 1,099.29 | 1,091.54 | 1,222.52 | 767.80 | 1,145.07 | 1,152.81 | 1,160.60 | 1,168.45 | 1,176.35 |
Weighted Average Cost Of Capital
| Share price | $ 59.3 |
|---|---|
| Beta | 0.838 |
| Diluted Shares Outstanding | 389.45 |
| Cost of Debt | |
| Tax Rate | 4.43 |
| After-tax Cost of Debt | 3.50% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.497 |
| Total Debt | 7,734.47 |
| Total Equity | 23,094.38 |
| Total Capital | 30,828.85 |
| Debt Weighting | 25.09 |
| Equity Weighting | 74.91 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 2,701.07 | 2,571.70 | 2,464 | 2,735.18 | 2,753.67 | 2,772.29 | 2,791.03 | 2,809.89 | 2,828.89 | 2,848.01 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,456.98 | 1,265.54 | 1,260.18 | 1,454.76 | 966.36 | 1,344.98 | 1,354.07 | 1,363.22 | 1,372.44 | 1,381.72 |
| Capital Expenditure | -190.26 | -166.24 | -168.65 | -232.24 | -198.56 | -199.91 | -201.26 | -202.62 | -203.99 | -205.37 |
| Free Cash Flow | 1,266.72 | 1,099.29 | 1,091.54 | 1,222.52 | 767.80 | 1,145.07 | 1,152.81 | 1,160.60 | 1,168.45 | 1,176.35 |
| WACC | ||||||||||
| PV LFCF | 767.80 | 1,067.76 | 1,002.41 | 941.05 | 883.45 | 829.38 | ||||
| SUM PV LFCF | 4,724.05 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.24 |
| Free cash flow (t + 1) | 1,199.87 |
| Terminal Value | 22,898.37 |
| Present Value of Terminal Value | 16,144.35 |
Intrinsic Value
| Enterprise Value | 20,868.40 |
|---|---|
| Net Debt | 7,680.60 |
| Equity Value | 13,187.80 |
| Shares Outstanding | 389.45 |
| Equity Value Per Share | 33.86 |