Discounted Cash Flow (DCF) Analysis Levered

Toll Brothers, Inc. (TOL)

$47.68

+0.87 (+1.86%)
All numbers are in Millions, Currency in USD
Stock DCF: 203.25 | 47.68 | 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 5,815.067,143.267,223.977,077.668,790.369,804.4210,935.4512,196.9713,604.0115,173.36
Revenue (%)
Operating Cash Flow 959.72602.40437.661,008.121,303.131,177.781,313.651,465.191,634.221,822.74
Operating Cash Flow (%)
Capital Expenditure -0.71-0.972.420.70-66.88-14.57-16.26-18.13-20.22-22.55
Capital Expenditure (%)
Free Cash Flow 959.01601.44440.081,008.811,236.251,163.211,297.391,447.061,613.991,800.18

Weighted Average Cost Of Capital

Share price $ 47.68
Beta 1.587
Diluted Shares Outstanding 125.81
Cost of Debt
Tax Rate 24.24
After-tax Cost of Debt 3.79%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.279
Total Debt 3,795.53
Total Equity 5,998.48
Total Capital 9,794.01
Debt Weighting 38.75
Equity Weighting 61.25
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 5,815.067,143.267,223.977,077.668,790.369,804.4210,935.4512,196.9713,604.0115,173.36
Operating Cash Flow 959.72602.40437.661,008.121,303.131,177.781,313.651,465.191,634.221,822.74
Capital Expenditure -0.71-0.972.420.70-66.88-14.57-16.26-18.13-20.22-22.55
Free Cash Flow 959.01601.44440.081,008.811,236.251,163.211,297.391,447.061,613.991,800.18
WACC
PV LFCF 1,079.441,117.271,156.421,196.941,238.88
SUM PV LFCF 5,788.94

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.76
Free cash flow (t + 1) 1,836.19
Terminal Value 31,878.26
Present Value of Terminal Value 21,938.49

Intrinsic Value

Enterprise Value 27,727.43
Net Debt 2,157.04
Equity Value 25,570.39
Shares Outstanding 125.81
Equity Value Per Share 203.25