Discounted Cash Flow (DCF) Analysis Levered

Toll Brothers, Inc. (TOL)

$74.29

+0.20 (+0.27%)
All numbers are in Millions, Currency in USD
Stock DCF: 133.51 | 74.29 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 7,143.267,223.977,077.668,790.369,473.1710,209.0311,002.0411,856.6512,777.6513,770.18
Revenue (%)
Operating Cash Flow 602.40437.661,008.121,303.13986.821,102.101,187.711,279.971,379.391,486.54
Operating Cash Flow (%)
Capital Expenditure -0.972.420.70-66.88-71.73-30.39-32.75-35.29-38.03-40.98
Capital Expenditure (%)
Free Cash Flow 601.44440.081,008.811,236.25915.091,071.711,154.961,244.681,341.361,445.55

Weighted Average Cost Of Capital

Share price $ 74.29
Beta 1.378
Diluted Shares Outstanding 117.97
Cost of Debt
Tax Rate 24.49
After-tax Cost of Debt 3.78%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.247
Total Debt -
Total Equity 8,764.36
Total Capital 8,764.36
Debt Weighting 0.00
Equity Weighting 100.00
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 7,143.267,223.977,077.668,790.369,473.1710,209.0311,002.0411,856.6512,777.6513,770.18
Operating Cash Flow 602.40437.661,008.121,303.13986.821,102.101,187.711,279.971,379.391,486.54
Capital Expenditure -0.972.420.70-66.88-71.73-30.39-32.75-35.29-38.03-40.98
Free Cash Flow 601.44440.081,008.811,236.25915.091,071.711,154.961,244.681,341.361,445.55
WACC
PV LFCF 915.09972.08950.19928.80907.88887.44
SUM PV LFCF 4,646.39

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.25
Free cash flow (t + 1) 1,474.46
Terminal Value 17,872.29
Present Value of Terminal Value 10,972.04

Intrinsic Value

Enterprise Value 15,618.43
Net Debt -132.34
Equity Value 15,750.77
Shares Outstanding 117.97
Equity Value Per Share 133.51