Discounted Cash Flow (DCF) Analysis Levered
The Howard Hughes Corporation (HHC)
$71.38
+0.06 (+0.08%)
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 | 1,100.12 | 1,064.54 | 1,300.54 | 699.49 | 1,427.90 | 1,702.25 | 2,029.32 | 2,419.22 | 2,884.04 | 3,438.17 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 319.03 | 210.52 | 207.73 | -72.87 | -283.96 | 117.27 | 139.80 | 166.66 | 198.68 | 236.85 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -302.06 | -625.20 | -669.61 | -1.61 | -1.81 | -469.93 | -560.22 | -667.86 | -796.17 | -949.15 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 16.97 | -414.68 | -461.88 | -74.48 | -285.77 | -352.66 | -420.42 | -501.20 | -597.50 | -712.30 |
Weighted Average Cost Of Capital
| Share price | $ 71.38 |
|---|---|
| Beta | 1.433 |
| Diluted Shares Outstanding | 52.31 |
| Cost of Debt | |
| Tax Rate | 12.45 |
| After-tax Cost of Debt | 2.44% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.606 |
| Total Debt | 4,660.52 |
| Total Equity | 3,733.75 |
| Total Capital | 8,394.27 |
| Debt Weighting | 55.52 |
| Equity Weighting | 44.48 |
| 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 | 1,100.12 | 1,064.54 | 1,300.54 | 699.49 | 1,427.90 | 1,702.25 | 2,029.32 | 2,419.22 | 2,884.04 | 3,438.17 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 319.03 | 210.52 | 207.73 | -72.87 | -283.96 | 117.27 | 139.80 | 166.66 | 198.68 | 236.85 |
| Capital Expenditure | -302.06 | -625.20 | -669.61 | -1.61 | -1.81 | -469.93 | -560.22 | -667.86 | -796.17 | -949.15 |
| Free Cash Flow | 16.97 | -414.68 | -461.88 | -74.48 | -285.77 | -352.66 | -420.42 | -501.20 | -597.50 | -712.30 |
| WACC | ||||||||||
| PV LFCF | -333.86 | -376.80 | -425.25 | -479.94 | -541.66 | |||||
| SUM PV LFCF | -2,157.51 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.63 |
| Free cash flow (t + 1) | -726.54 |
| Terminal Value | -20,014.94 |
| Present Value of Terminal Value | -15,220.12 |
Intrinsic Value
| Enterprise Value | -17,377.63 |
|---|---|
| Net Debt | 3,817.31 |
| Equity Value | -21,194.94 |
| Shares Outstanding | 52.31 |
| Equity Value Per Share | -405.19 |