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 |