Discounted Cash Flow (DCF) Analysis Levered

Realogy Holdings Corp. (RLGY)

$12.08

-0.17 (-1.39%)

All numbers are in Millions, Currency in USD

Stock DCF: 99.35 | 12.08 | 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	6,114	6,079	5,598	6,221	7,983	8,601.03	9,266.91	9,984.34	10,757.32	11,590.14
Revenue (%)
Operating Cash Flow	667	394	371	748	643	758.55	817.28	880.55	948.72	1,022.17
Operating Cash Flow (%)
Capital Expenditure	-99	-105	-108	-95	-101	-138.79	-149.53	-161.11	-173.58	-187.02
Capital Expenditure (%)
Free Cash Flow	568	289	263	653	542	619.76	667.75	719.44	775.14	835.15

Weighted Average Cost Of Capital

Share price	$ 12.08
Beta	2.471
Diluted Shares Outstanding	115.20
Cost of Debt
Tax Rate	21.15
After-tax Cost of Debt	4.15%
Risk-Free Rate
Market Risk Premium
Cost of Equity	15.354
Total Debt	3,613
Total Equity	1,391.62
Total Capital	5,004.62
Debt Weighting	72.19
Equity Weighting	27.81
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	6,114	6,079	5,598	6,221	7,983	8,601.03	9,266.91	9,984.34	10,757.32	11,590.14
Operating Cash Flow	667	394	371	748	643	758.55	817.28	880.55	948.72	1,022.17
Capital Expenditure	-99	-105	-108	-95	-101	-138.79	-149.53	-161.11	-173.58	-187.02
Free Cash Flow	568	289	263	653	542	619.76	667.75	719.44	775.14	835.15
WACC
PV LFCF						577.81	580.41	583.02	585.64	588.27
SUM PV LFCF										2,915.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.26
Free cash flow (t + 1)	851.85
Terminal Value	16,194.92
Present Value of Terminal Value	11,407.48

Intrinsic Value

Enterprise Value	14,322.63
Net Debt	2,878
Equity Value	11,444.63
Shares Outstanding	115.20
Equity Value Per Share	99.35