Discounted Cash Flow (DCF) Analysis Levered

Marriott International, Inc. (MAR)

$177.22

+6.08 (+3.55%)

All numbers are in Millions, Currency in USD

Stock DCF: 63.96 | 177.22 | overvalue

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	20,758	20,972	10,571	13,857	20,773	22,457.23	24,278.01	26,246.41	28,374.41	30,674.94
Revenue (%)
Operating Cash Flow	2,357	1,685	1,639	1,177	2,363	2,459.66	2,659.08	2,874.67	3,107.74	3,359.71
Operating Cash Flow (%)
Capital Expenditure	-556	-653	-135	-183	-332	-448.61	-484.98	-524.30	-566.81	-612.77
Capital Expenditure (%)
Free Cash Flow	1,801	1,032	1,504	994	2,031	2,011.05	2,174.10	2,350.37	2,540.93	2,746.94

Weighted Average Cost Of Capital

Share price	$ 177.22
Beta	1.580
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	11.148
Total Debt	11,098
Total Equity	57,738.28
Total Capital	68,836.28
Debt Weighting	16.12
Equity Weighting	83.88
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	20,758	20,972	10,571	13,857	20,773	22,457.23	24,278.01	26,246.41	28,374.41	30,674.94
Operating Cash Flow	2,357	1,685	1,639	1,177	2,363	2,459.66	2,659.08	2,874.67	3,107.74	3,359.71
Capital Expenditure	-556	-653	-135	-183	-332	-448.61	-484.98	-524.30	-566.81	-612.77
Free Cash Flow	1,801	1,032	1,504	994	2,031	2,011.05	2,174.10	2,350.37	2,540.93	2,746.94
WACC
PV LFCF						1,831.72	1,803.65	1,776.02	1,748.80	1,722.01
SUM PV LFCF										8,882.20

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.79
Free cash flow (t + 1)	2,801.88
Terminal Value	35,967.65
Present Value of Terminal Value	22,547.49

Intrinsic Value

Enterprise Value	31,429.69
Net Debt	10,591
Equity Value	20,838.69
Shares Outstanding	325.80
Equity Value Per Share	63.96