Discounted Cash Flow (DCF) Analysis Levered

Hyatt Hotels Corporation (H)

$80.57

+2.44 (+3.12%)
All numbers are in Millions, Currency in USD
Stock DCF: 31.59 | 80.57 | overvalue

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 4,6854,4545,0202,0663,0282,993.902,960.192,926.862,893.902,861.31
Revenue (%)
Operating Cash Flow 620341396-61131557.5356.8856.2455.6054.98
Operating Cash Flow (%)
Capital Expenditure -298-297-369-122-111-179.34-177.32-175.32-173.35-171.40
Capital Expenditure (%)
Free Cash Flow 3224427-733204-121.81-120.44-119.08-117.74-116.42

Weighted Average Cost Of Capital

Share price $ 80.57
Beta 1.370
Diluted Shares Outstanding 103.97
Cost of Debt
Tax Rate 604.55
After-tax Cost of Debt -18.87%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.432
Total Debt 4,362
Total Equity 8,376.92
Total Capital 12,738.92
Debt Weighting 34.24
Equity Weighting 65.76
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 4,6854,4545,0202,0663,0282,993.902,960.192,926.862,893.902,861.31
Operating Cash Flow 620341396-61131557.5356.8856.2455.6054.98
Capital Expenditure -298-297-369-122-111-179.34-177.32-175.32-173.35-171.40
Free Cash Flow 3224427-733204-121.81-120.44-119.08-117.74-116.42
WACC
PV LFCF -121.33-119.48-117.67-115.88-114.12
SUM PV LFCF -588.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 0.40
Free cash flow (t + 1) -118.75
Terminal Value 7,421.61
Present Value of Terminal Value 7,274.94

Intrinsic Value

Enterprise Value 6,686.47
Net Debt 3,402
Equity Value 3,284.47
Shares Outstanding 103.97
Equity Value Per Share 31.59