Discounted Cash Flow (DCF) Analysis Levered

PulteGroup, Inc. (PHM)

$57.74

-1.06 (-1.80%)
All numbers are in Millions, Currency in USD
Stock DCF: 148.20 | 57.74 | 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 8,573.2510,188.3310,212.9611,036.0813,926.8815,783.8217,888.3620,273.5022,976.6726,040.27
Revenue (%)
Operating Cash Flow 663.081,449.741,077.541,784.341,004.021,764.381,999.632,266.252,568.422,910.88
Operating Cash Flow (%)
Capital Expenditure -32.05-59.04-58.12-58.35-72.78-81.25-92.08-104.36-118.27-134.04
Capital Expenditure (%)
Free Cash Flow 631.031,390.701,019.431,725.99931.241,683.131,907.552,161.892,450.152,776.84

Weighted Average Cost Of Capital

Share price $ 57.74
Beta 1.283
Diluted Shares Outstanding 259.93
Cost of Debt
Tax Rate 22.45
After-tax Cost of Debt 0.02%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.669
Total Debt 2,747.83
Total Equity 15,008.24
Total Capital 17,756.07
Debt Weighting 15.48
Equity Weighting 84.52
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 8,573.2510,188.3310,212.9611,036.0813,926.8815,783.8217,888.3620,273.5022,976.6726,040.27
Operating Cash Flow 663.081,449.741,077.541,784.341,004.021,764.381,999.632,266.252,568.422,910.88
Capital Expenditure -32.05-59.04-58.12-58.35-72.78-81.25-92.08-104.36-118.27-134.04
Free Cash Flow 631.031,390.701,019.431,725.99931.241,683.131,907.552,161.892,450.152,776.84
WACC
PV LFCF 1,050.111,100.141,152.551,207.451,264.97
SUM PV LFCF 8,556.65

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.18
Free cash flow (t + 1) 2,832.38
Terminal Value 45,831.36
Present Value of Terminal Value 30,933.41

Intrinsic Value

Enterprise Value 39,490.06
Net Debt 968.74
Equity Value 38,521.32
Shares Outstanding 259.93
Equity Value Per Share 148.20