Discounted Cash Flow (DCF) Analysis Levered

Marriott Vacations Worldwide Corpor... (VAC)

$138.2

-4.93 (-3.44%)
All numbers are in Millions, Currency in USD
Stock DCF: 142.25 | 138.2 | 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 1,951.942,9684,3552,8863,8904,860.976,074.307,590.489,485.1111,852.66
Revenue (%)
Operating Cash Flow 142.1797382299343374.31467.74584.48730.38912.68
Operating Cash Flow (%)
Capital Expenditure -26.30-40-46-41-47-62.03-77.51-96.86-121.03-151.24
Capital Expenditure (%)
Free Cash Flow 115.8857336258296312.28390.23487.63609.34761.44

Weighted Average Cost Of Capital

Share price $ 138.2
Beta 2.095
Diluted Shares Outstanding 43.30
Cost of Debt
Tax Rate 61.42
After-tax Cost of Debt 1.41%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.402
Total Debt 4,487
Total Equity 5,984.06
Total Capital 10,471.06
Debt Weighting 42.85
Equity Weighting 57.15
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 1,951.942,9684,3552,8863,8904,860.976,074.307,590.489,485.1111,852.66
Operating Cash Flow 142.1797382299343374.31467.74584.48730.38912.68
Capital Expenditure -26.30-40-46-41-47-62.03-77.51-96.86-121.03-151.24
Free Cash Flow 115.8857336258296312.28390.23487.63609.34761.44
WACC
PV LFCF 288.45332.95384.31443.60512.03
SUM PV LFCF 1,961.35

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.26
Free cash flow (t + 1) 776.67
Terminal Value 12,406.87
Present Value of Terminal Value 8,343

Intrinsic Value

Enterprise Value 10,304.34
Net Debt 4,145
Equity Value 6,159.34
Shares Outstanding 43.30
Equity Value Per Share 142.25