Discounted Cash Flow (DCF) Analysis Levered
Lennar Corporation (LEN)
$105.11
+2.56 (+2.50%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 20,571.63 | 22,259.56 | 22,488.85 | 27,130.68 | 33,671.01 | 38,215.13 | 43,372.50 | 49,225.90 | 55,869.25 | 63,409.16 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,711.61 | 1,482.34 | 4,190.82 | 2,532.77 | 3,265.67 | 4,023.97 | 4,567.03 | 5,183.38 | 5,882.91 | 6,676.85 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -130.44 | -86.50 | -72.75 | -65.17 | -57.21 | -134.23 | -152.35 | -172.91 | -196.25 | -222.73 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,581.17 | 1,395.85 | 4,118.07 | 2,467.60 | 3,208.45 | 3,889.73 | 4,414.68 | 5,010.47 | 5,686.66 | 6,454.11 |
Weighted Average Cost Of Capital
| Share price | $ 105.11 |
|---|---|
| Beta | 1.411 |
| Diluted Shares Outstanding | 306.61 |
| Cost of Debt | |
| Tax Rate | 23.28 |
| After-tax Cost of Debt | 3.84% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.153 |
| Total Debt | - |
| Total Equity | 32,227.99 |
| Total Capital | 32,227.99 |
| Debt Weighting | 0.00 |
| Equity Weighting | 100.00 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 20,571.63 | 22,259.56 | 22,488.85 | 27,130.68 | 33,671.01 | 38,215.13 | 43,372.50 | 49,225.90 | 55,869.25 | 63,409.16 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,711.61 | 1,482.34 | 4,190.82 | 2,532.77 | 3,265.67 | 4,023.97 | 4,567.03 | 5,183.38 | 5,882.91 | 6,676.85 |
| Capital Expenditure | -130.44 | -86.50 | -72.75 | -65.17 | -57.21 | -134.23 | -152.35 | -172.91 | -196.25 | -222.73 |
| Free Cash Flow | 1,581.17 | 1,395.85 | 4,118.07 | 2,467.60 | 3,208.45 | 3,889.73 | 4,414.68 | 5,010.47 | 5,686.66 | 6,454.11 |
| WACC | ||||||||||
| PV LFCF | 3,531.31 | 3,638.57 | 3,749.08 | 3,862.95 | 3,980.28 | |||||
| SUM PV LFCF | 18,762.19 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 10.15 |
| Free cash flow (t + 1) | 6,583.20 |
| Terminal Value | 80,775.42 |
| Present Value of Terminal Value | 49,814.61 |
Intrinsic Value
| Enterprise Value | 68,576.80 |
|---|---|
| Net Debt | -4,616.12 |
| Equity Value | 73,192.93 |
| Shares Outstanding | 306.61 |
| Equity Value Per Share | 238.72 |