Discounted Cash Flow (DCF) Analysis Levered

NVR, Inc. (NVR)

$4057.67

+48.09 (+1.20%)
All numbers are in Millions, Currency in USD
Stock DCF: 6,324.80 | 4057.67 | undervalue

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 6,313.697,175.277,400.817,545.858,959.759,799.4310,717.8011,722.2412,820.8114,022.34
Revenue (%)
Operating Cash Flow 568.90723.13866.53925.271,242.391,115.681,220.241,334.591,459.671,596.46
Operating Cash Flow (%)
Capital Expenditure -20.27-19.66-22.70-16.12-17.87-25.77-28.19-30.83-33.72-36.88
Capital Expenditure (%)
Free Cash Flow 548.63703.46843.84909.151,224.521,089.911,192.051,303.761,425.951,559.59

Weighted Average Cost Of Capital

Share price $ 4,057.67
Beta 0.994
Diluted Shares Outstanding 3.92
Cost of Debt
Tax Rate 22.24
After-tax Cost of Debt 2.60%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.391
Total Debt 1,590.82
Total Equity 15,893.89
Total Capital 17,484.71
Debt Weighting 9.10
Equity Weighting 90.90
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 6,313.697,175.277,400.817,545.858,959.759,799.4310,717.8011,722.2412,820.8114,022.34
Operating Cash Flow 568.90723.13866.53925.271,242.391,115.681,220.241,334.591,459.671,596.46
Capital Expenditure -20.27-19.66-22.70-16.12-17.87-25.77-28.19-30.83-33.72-36.88
Free Cash Flow 548.63703.46843.84909.151,224.521,089.911,192.051,303.761,425.951,559.59
WACC
PV LFCF 1,010.481,024.651,039.011,053.571,068.33
SUM PV LFCF 5,196.04

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.86
Free cash flow (t + 1) 1,590.78
Terminal Value 27,146.36
Present Value of Terminal Value 18,595.57

Intrinsic Value

Enterprise Value 23,791.61
Net Debt -982.65
Equity Value 24,774.26
Shares Outstanding 3.92
Equity Value Per Share 6,324.80