Discounted Cash Flow (DCF) Analysis Levered

Lennar Corporation (LEN)

$103.705

-1.10 (-1.05%)
All numbers are in Millions, Currency in USD
Stock DCF: 235.85 | 103.705 | undervalue

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 20,571.6322,259.5622,488.8527,130.6833,671.0138,215.1343,372.5049,225.9055,869.2563,409.16
Revenue (%)
Operating Cash Flow 1,711.611,482.344,190.822,532.773,265.674,023.974,567.035,183.385,882.916,676.85
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 1,581.171,395.854,118.072,467.603,208.453,889.734,414.685,010.475,686.666,454.11

Weighted Average Cost Of Capital

Share price $ 103.705
Beta 1.405
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 10.252
Total Debt -
Total Equity 31,797.20
Total Capital 31,797.20
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 20,571.6322,259.5622,488.8527,130.6833,671.0138,215.1343,372.5049,225.9055,869.2563,409.16
Operating Cash Flow 1,711.611,482.344,190.822,532.773,265.674,023.974,567.035,183.385,882.916,676.85
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 1,581.171,395.854,118.072,467.603,208.453,889.734,414.685,010.475,686.666,454.11
WACC
PV LFCF 3,528.103,631.973,738.893,848.963,962.27
SUM PV LFCF 18,710.18

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.25
Free cash flow (t + 1) 6,583.20
Terminal Value 79,796.33
Present Value of Terminal Value 48,988.02

Intrinsic Value

Enterprise Value 67,698.21
Net Debt -4,616.12
Equity Value 72,314.33
Shares Outstanding 306.61
Equity Value Per Share 235.85