Discounted Cash Flow (DCF) Analysis Levered
Equity Residential (EQR)
$74.32
-0.64 (-0.85%)
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 | 2,471.41 | 2,578.43 | 2,701.07 | 2,571.70 | 2,464 | 2,464.67 | 2,465.34 | 2,466.02 | 2,466.69 | 2,467.37 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 1,265.79 | 1,356.30 | 1,456.98 | 1,265.54 | 1,260.18 | 1,272.33 | 1,272.68 | 1,273.03 | 1,273.37 | 1,273.72 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -204.11 | -193.01 | -183.38 | -156.08 | -152.72 | -171.54 | -171.59 | -171.64 | -171.68 | -171.73 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 1,061.67 | 1,163.29 | 1,273.61 | 1,109.46 | 1,107.47 | 1,100.79 | 1,101.09 | 1,101.39 | 1,101.69 | 1,101.99 |
Weighted Average Cost Of Capital
Share price | $ 74.32 |
---|---|
Beta | 0.808 |
Diluted Shares Outstanding | 388.37 |
Cost of Debt | |
Tax Rate | 4.87 |
After-tax Cost of Debt | 3.00% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 6.692 |
Total Debt | 8,653.79 |
Total Equity | 28,863.96 |
Total Capital | 37,517.74 |
Debt Weighting | 23.07 |
Equity Weighting | 76.93 |
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 | 2,471.41 | 2,578.43 | 2,701.07 | 2,571.70 | 2,464 | 2,464.67 | 2,465.34 | 2,466.02 | 2,466.69 | 2,467.37 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 1,265.79 | 1,356.30 | 1,456.98 | 1,265.54 | 1,260.18 | 1,272.33 | 1,272.68 | 1,273.03 | 1,273.37 | 1,273.72 |
Capital Expenditure | -204.11 | -193.01 | -183.38 | -156.08 | -152.72 | -171.54 | -171.59 | -171.64 | -171.68 | -171.73 |
Free Cash Flow | 1,061.67 | 1,163.29 | 1,273.61 | 1,109.46 | 1,107.47 | 1,100.79 | 1,101.09 | 1,101.39 | 1,101.69 | 1,101.99 |
WACC | ||||||||||
PV LFCF | 783.08 | 740.07 | 699.43 | 661.01 | 624.71 | |||||
SUM PV LFCF | 4,659.57 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 5.84 |
Free cash flow (t + 1) | 1,124.03 |
Terminal Value | 29,271.62 |
Present Value of Terminal Value | 22,039.29 |
Intrinsic Value
Enterprise Value | 26,698.86 |
---|---|
Net Debt | 8,529.96 |
Equity Value | 18,168.90 |
Shares Outstanding | 388.37 |
Equity Value Per Share | 46.78 |