Discounted Cash Flow (DCF) Analysis Levered
Equity Residential (EQR)
$66.18
+0.95 (+1.46%)
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 |
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 |
---|---|---|---|---|---|---|---|---|---|
Revenue (%) | |||||||||
Operating Cash Flow | 1,456.98 | 1,265.54 | 1,260.18 | 1,454.76 | 1,428.34 | 1,438 | 1,447.72 | 1,457.50 | 1,467.36 |
Operating Cash Flow (%) | |||||||||
Capital Expenditure | -183.38 | -156.08 | -152.72 | -221.09 | -186.83 | -188.09 | -189.36 | -190.64 | -191.93 |
Capital Expenditure (%) | |||||||||
Free Cash Flow | 1,273.61 | 1,109.46 | 1,107.47 | 1,233.67 | 1,241.51 | 1,249.90 | 1,258.35 | 1,266.86 | 1,275.42 |
Weighted Average Cost Of Capital
Share price | $ 66.18 |
---|---|
Beta | 0.832 |
Diluted Shares Outstanding | 388.37 |
Cost of Debt | |
Tax Rate | 4.81 |
After-tax Cost of Debt | 4.76% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 7.673 |
Total Debt | 2,392.14 |
Total Equity | 25,702.59 |
Total Capital | 28,094.73 |
Debt Weighting | 8.51 |
Equity Weighting | 91.49 |
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 |
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 |
---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 1,456.98 | 1,265.54 | 1,260.18 | 1,454.76 | 1,428.34 | 1,438 | 1,447.72 | 1,457.50 | 1,467.36 |
Capital Expenditure | -183.38 | -156.08 | -152.72 | -221.09 | -186.83 | -188.09 | -189.36 | -190.64 | -191.93 |
Free Cash Flow | 1,273.61 | 1,109.46 | 1,107.47 | 1,233.67 | 1,241.51 | 1,249.90 | 1,258.35 | 1,266.86 | 1,275.42 |
WACC | |||||||||
PV LFCF | 1,155.75 | 1,083.19 | 1,015.19 | 951.45 | 891.72 | ||||
SUM PV LFCF | 5,097.31 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.42 |
Free cash flow (t + 1) | 1,300.93 |
Terminal Value | 24,002.43 |
Present Value of Terminal Value | 16,781.45 |
Intrinsic Value
Enterprise Value | 21,878.76 |
---|---|
Net Debt | 2,338.27 |
Equity Value | 19,540.48 |
Shares Outstanding | 388.37 |
Equity Value Per Share | 50.31 |