Discounted Cash Flow (DCF) Analysis Levered

Lennar Corporation (LEN-B)

$60.74

+0.74 (+1.23%)
All numbers are in Millions, Currency in USD
Stock DCF: 276.79 | 60.74 | undervalue

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 12,646.3620,571.6322,259.5622,488.8527,130.6833,407.6441,136.8450,654.2662,373.6576,804.43
Revenue (%)
Operating Cash Flow 996.861,711.611,482.344,190.822,532.773,396.404,182.205,149.796,341.257,808.36
Operating Cash Flow (%)
Capital Expenditure -111.77-130.44-86.50-72.75-65.17-165.05-203.23-250.25-308.15-379.45
Capital Expenditure (%)
Free Cash Flow 885.091,581.171,395.854,118.072,467.603,231.363,978.964,899.546,033.107,428.92

Weighted Average Cost Of Capital

Share price $ 60.74
Beta 1.517
Diluted Shares Outstanding 306.61
Cost of Debt
Tax Rate 23.87
After-tax Cost of Debt 3.81%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.898
Total Debt 6,378.36
Total Equity 18,623.61
Total Capital 25,001.98
Debt Weighting 25.51
Equity Weighting 74.49
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 12,646.3620,571.6322,259.5622,488.8527,130.6833,407.6441,136.8450,654.2662,373.6576,804.43
Operating Cash Flow 996.861,711.611,482.344,190.822,532.773,396.404,182.205,149.796,341.257,808.36
Capital Expenditure -111.77-130.44-86.50-72.75-65.17-165.05-203.23-250.25-308.15-379.45
Free Cash Flow 885.091,581.171,395.854,118.072,467.603,231.363,978.964,899.546,033.107,428.92
WACC
PV LFCF 2,962.103,343.493,773.994,259.914,808.40
SUM PV LFCF 19,147.89

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.09
Free cash flow (t + 1) 7,577.49
Terminal Value 106,875.80
Present Value of Terminal Value 69,175.88

Intrinsic Value

Enterprise Value 88,323.77
Net Debt 3,456.62
Equity Value 84,867.15
Shares Outstanding 306.61
Equity Value Per Share 276.79