Discounted Cash Flow (DCF) Analysis Levered

KB Home (KBH)

$63.65

+0.91 (+1.45%)
All numbers are in Millions, Currency in USD
Stock DCF: 57.75 | 63.65 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 4,552.754,183.175,724.936,903.786,410.637,086.747,834.168,660.409,573.7910,583.51
Revenue (%)
Operating Cash Flow 251.04310.68-37.30183.421,082.70451.22498.81551.41609.57673.86
Operating Cash Flow (%)
Capital Expenditure -40.46-28.84-39.40-45.23-35.47-49.25-54.44-60.19-66.53-73.55
Capital Expenditure (%)
Free Cash Flow 210.58281.84-76.69138.181,047.23401.97444.36491.23543.04600.31

Weighted Average Cost Of Capital

Share price $ 63.65
Beta 1.725
Diluted Shares Outstanding 83.38
Cost of Debt
Tax Rate 23.48
After-tax Cost of Debt 3.83%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.427
Total Debt 1,716.43
Total Equity 5,307.14
Total Capital 7,023.57
Debt Weighting 24.44
Equity Weighting 75.56
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 4,552.754,183.175,724.936,903.786,410.637,086.747,834.168,660.409,573.7910,583.51
Operating Cash Flow 251.04310.68-37.30183.421,082.70451.22498.81551.41609.57673.86
Capital Expenditure -40.46-28.84-39.40-45.23-35.47-49.25-54.44-60.19-66.53-73.55
Free Cash Flow 210.58281.84-76.69138.181,047.23401.97444.36491.23543.04600.31
WACC
PV LFCF 364.33365.05365.76366.48367.20
SUM PV LFCF 1,828.83

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.33
Free cash flow (t + 1) 606.31
Terminal Value 6,498.52
Present Value of Terminal Value 3,975.08

Intrinsic Value

Enterprise Value 5,803.91
Net Debt 989.09
Equity Value 4,814.83
Shares Outstanding 83.38
Equity Value Per Share 57.75