Discounted Cash Flow (DCF) Analysis Levered

Park Hotels & Resorts Inc. (PK)

$16.6

-0.09 (-0.54%)
All numbers are in Millions, Currency in USD
Stock DCF: -26.15 | 16.6 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 2,8448521,3622,5012,6983,246.513,906.534,700.745,656.416,806.37
Revenue (%)
Operating Cash Flow 499-438-137409305-105.60-127.07-152.90-183.98-221.39
Operating Cash Flow (%)
Capital Expenditure -240-86-54-168-197.05-237.12-285.32-343.33-413.13-497.12
Capital Expenditure (%)
Free Cash Flow 259-524-191241107.95-342.71-412.39-496.23-597.11-718.50

Weighted Average Cost Of Capital

Share price $ 16.6
Beta 2.018
Diluted Shares Outstanding 215
Cost of Debt
Tax Rate 25.69
After-tax Cost of Debt 3.17%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.787
Total Debt 223
Total Equity 3,569
Total Capital 3,792
Debt Weighting 5.88
Equity Weighting 94.12
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 2,8448521,3622,5012,6983,246.513,906.534,700.745,656.416,806.37
Operating Cash Flow 499-438-137409305-105.60-127.07-152.90-183.98-221.39
Capital Expenditure -240-86-54-168-197.05-237.12-285.32-343.33-413.13-497.12
Free Cash Flow 259-524-191241107.95-342.71-412.39-496.23-597.11-718.50
WACC
PV LFCF -302.86-322.05-342.45-364.15-387.23
SUM PV LFCF -1,718.74

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 13.16
Free cash flow (t + 1) -747.25
Terminal Value -8,157.70
Present Value of Terminal Value -4,396.46

Intrinsic Value

Enterprise Value -6,115.19
Net Debt -494
Equity Value -5,621.19
Shares Outstanding 215
Equity Value Per Share -26.15