Discounted Cash Flow (DCF) Analysis Levered
Marriott International, Inc. (MAR)
$196.56
-2.99 (-1.50%)
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 | 20,690 | 20,972 | 10,571 | 13,857 | 20,773 | 22,474.47 | 24,315.30 | 26,306.92 | 28,461.66 | 30,792.89 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,357 | 1,685 | 1,639 | 1,177 | 2,363 | 2,463.22 | 2,664.98 | 2,883.26 | 3,119.42 | 3,374.93 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -556 | -653 | -135 | -183 | -332 | -449.35 | -486.16 | -525.98 | -569.06 | -615.67 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,801 | 1,032 | 1,504 | 994 | 2,031 | 2,013.87 | 2,178.82 | 2,357.28 | 2,550.37 | 2,759.26 |
Weighted Average Cost Of Capital
| Share price | $ 196.56 |
|---|---|
| Beta | 1.594 |
| Diluted Shares Outstanding | 325.80 |
| Cost of Debt | |
| Tax Rate | 24.28 |
| After-tax Cost of Debt | 2.75% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 12.097 |
| Total Debt | 11,098 |
| Total Equity | 64,039.25 |
| Total Capital | 75,137.25 |
| Debt Weighting | 14.77 |
| Equity Weighting | 85.23 |
| 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 | 20,690 | 20,972 | 10,571 | 13,857 | 20,773 | 22,474.47 | 24,315.30 | 26,306.92 | 28,461.66 | 30,792.89 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,357 | 1,685 | 1,639 | 1,177 | 2,363 | 2,463.22 | 2,664.98 | 2,883.26 | 3,119.42 | 3,374.93 |
| Capital Expenditure | -556 | -653 | -135 | -183 | -332 | -449.35 | -486.16 | -525.98 | -569.06 | -615.67 |
| Free Cash Flow | 1,801 | 1,032 | 1,504 | 994 | 2,031 | 2,013.87 | 2,178.82 | 2,357.28 | 2,550.37 | 2,759.26 |
| WACC | ||||||||||
| PV LFCF | 1,818.89 | 1,777.34 | 1,736.74 | 1,697.06 | 1,658.30 | |||||
| SUM PV LFCF | 8,688.32 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 10.72 |
| Free cash flow (t + 1) | 2,814.44 |
| Terminal Value | 32,275.74 |
| Present Value of Terminal Value | 19,397.51 |
Intrinsic Value
| Enterprise Value | 28,085.82 |
|---|---|
| Net Debt | 10,591 |
| Equity Value | 17,494.82 |
| Shares Outstanding | 325.80 |
| Equity Value Per Share | 53.70 |