Discounted Cash Flow (DCF) Analysis Levered

Marriott International, Inc. (MAR)

$139.39

+6.33 (+4.76%)

All numbers are in Millions, Currency in USD

Stock DCF: 6.66 | 139.39 | overvalue

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	22,894	20,758	20,972	10,571	13,857	12,928.28	12,061.80	11,253.40	10,499.18	9,795.51
Revenue (%)
Operating Cash Flow	2,436	2,357	1,685	1,639	1,177	1,396.98	1,303.35	1,216	1,134.50	1,058.47
Operating Cash Flow (%)
Capital Expenditure	-240	-556	-653	-135	-183	-244.04	-227.68	-212.42	-198.19	-184.90
Capital Expenditure (%)
Free Cash Flow	2,196	1,801	1,032	1,504	994	1,152.94	1,075.67	1,003.58	936.32	873.56

Weighted Average Cost Of Capital

Share price	$ 139.39
Beta	1.572
Diluted Shares Outstanding	325.80
Cost of Debt
Tax Rate	6.86
After-tax Cost of Debt	3.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.546
Total Debt	11,236
Total Equity	45,413.26
Total Capital	56,649.26
Debt Weighting	19.83
Equity Weighting	80.17
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	22,894	20,758	20,972	10,571	13,857	12,928.28	12,061.80	11,253.40	10,499.18	9,795.51
Operating Cash Flow	2,436	2,357	1,685	1,639	1,177	1,396.98	1,303.35	1,216	1,134.50	1,058.47
Capital Expenditure	-240	-556	-653	-135	-183	-244.04	-227.68	-212.42	-198.19	-184.90
Free Cash Flow	2,196	1,801	1,032	1,504	994	1,152.94	1,075.67	1,003.58	936.32	873.56
WACC
PV LFCF						1,056.39	903.05	771.97	659.91	564.12
SUM PV LFCF										3,955.44

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.14
Free cash flow (t + 1)	891.03
Terminal Value	12,479.46
Present Value of Terminal Value	8,058.90

Intrinsic Value

Enterprise Value	12,014.34
Net Debt	9,843
Equity Value	2,171.34
Shares Outstanding	325.80
Equity Value Per Share	6.66