Discounted Cash Flow (DCF) Analysis Levered

Park Hotels & Resorts Inc. (PK)

$14.445

-0.34 (-2.27%)
All numbers are in Millions, Currency in USD
Stock DCF: -24.06 | 14.445 | 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 2,7912,7372,8448521,3621,334.051,306.671,279.861,253.601,227.87
Revenue (%)
Operating Cash Flow 653444499-438-137-11.48-11.24-11.01-10.79-10.57
Operating Cash Flow (%)
Capital Expenditure -185-188-240-86-54-96.04-94.07-92.14-90.25-88.39
Capital Expenditure (%)
Free Cash Flow 468256259-524-191-107.52-105.31-103.15-101.03-98.96

Weighted Average Cost Of Capital

Share price $ 14.445
Beta 1.957
Diluted Shares Outstanding 236
Cost of Debt
Tax Rate -2.00
After-tax Cost of Debt 5.27%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.857
Total Debt 4,899
Total Equity 3,409.02
Total Capital 8,308.02
Debt Weighting 58.97
Equity Weighting 41.03
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 2,7912,7372,8448521,3621,334.051,306.671,279.861,253.601,227.87
Operating Cash Flow 653444499-438-137-11.48-11.24-11.01-10.79-10.57
Capital Expenditure -185-188-240-86-54-96.04-94.07-92.14-90.25-88.39
Free Cash Flow 468256259-524-191-107.52-105.31-103.15-101.03-98.96
WACC
PV LFCF -66.34-59.96-54.18-48.97-44.26
SUM PV LFCF -409.29

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.38
Free cash flow (t + 1) -100.94
Terminal Value -1,582.12
Present Value of Terminal Value -1,058.02

Intrinsic Value

Enterprise Value -1,467.31
Net Debt 4,211
Equity Value -5,678.31
Shares Outstanding 236
Equity Value Per Share -24.06