Discounted Cash Flow (DCF) Analysis Levered
Meritage Homes Corporation (MTH)
$88.39
+0.22 (+0.25%)
All numbers are in Millions, Currency in USD
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 | 3,254.83 | 3,543.92 | 3,677.84 | 4,506.31 | 5,147.33 | 5,783.17 | 6,497.56 | 7,300.19 | 8,201.97 | 9,215.15 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | -87.13 | 262.20 | 346.82 | 530.36 | -152.09 | 265.63 | 298.45 | 335.31 | 376.73 | 423.27 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -18.10 | -33.41 | -24.38 | -19.93 | -25.66 | -35.89 | -40.32 | -45.30 | -50.90 | -57.19 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -105.23 | 228.79 | 322.44 | 510.43 | -177.76 | 229.75 | 258.13 | 290.01 | 325.84 | 366.09 |
Weighted Average Cost Of Capital
| Share price | $ 88.39 |
|---|---|
| Beta | 1.617 |
| Diluted Shares Outstanding | 37.72 |
| Cost of Debt | |
| Tax Rate | 22.77 |
| After-tax Cost of Debt | 0.02% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.469 |
| Total Debt | 1,186.21 |
| Total Equity | 3,333.89 |
| Total Capital | 4,520.10 |
| Debt Weighting | 26.24 |
| Equity Weighting | 73.76 |
| 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 | 3,254.83 | 3,543.92 | 3,677.84 | 4,506.31 | 5,147.33 | 5,783.17 | 6,497.56 | 7,300.19 | 8,201.97 | 9,215.15 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -87.13 | 262.20 | 346.82 | 530.36 | -152.09 | 265.63 | 298.45 | 335.31 | 376.73 | 423.27 |
| Capital Expenditure | -18.10 | -33.41 | -24.38 | -19.93 | -25.66 | -35.89 | -40.32 | -45.30 | -50.90 | -57.19 |
| Free Cash Flow | -105.23 | 228.79 | 322.44 | 510.43 | -177.76 | 229.75 | 258.13 | 290.01 | 325.84 | 366.09 |
| WACC | ||||||||||
| PV LFCF | 213.26 | 222.41 | 231.96 | 241.91 | 252.29 | |||||
| SUM PV LFCF | 1,161.83 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.73 |
| Free cash flow (t + 1) | 373.41 |
| Terminal Value | 6,516.72 |
| Present Value of Terminal Value | 4,491.03 |
Intrinsic Value
| Enterprise Value | 5,652.86 |
|---|---|
| Net Debt | 567.87 |
| Equity Value | 5,084.99 |
| Shares Outstanding | 37.72 |
| Equity Value Per Share | 134.82 |