Discounted Cash Flow (DCF) Analysis Levered

Walker & Dunlop, Inc. (WD)

$98.05

-2.88 (-2.85%)
All numbers are in Millions, Currency in USD
Stock DCF: 440.20 | 98.05 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 711.86725.25817.221,083.711,254.111,451.301,679.501,943.592,249.192,602.853,012.12
Revenue (%)
Operating Cash Flow 1,067.6464.08427.56-1,411.37253.64293.52339.67393.08454.89526.42609.19
Operating Cash Flow (%)
Capital Expenditure -5.21-4.72-4.71-2.98-7.01-8.11-9.38-10.86-12.56-14.54-16.82
Capital Expenditure (%)
Free Cash Flow 1,062.4359.35422.85-1,414.35246.63285.41330.29382.23442.33511.88592.37

Weighted Average Cost Of Capital

Share price $ 98.05
Beta 1.290
Diluted Shares Outstanding 31.53
Cost of Debt
Tax Rate 24.51
After-tax Cost of Debt 0.23%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.622
Total Debt 2,681.75
Total Equity 3,091.81
Total Capital 5,773.56
Debt Weighting 46.45
Equity Weighting 53.55
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 711.86725.25817.221,083.711,254.111,451.301,679.501,943.592,249.192,602.853,012.12
Operating Cash Flow 1,067.6464.08427.56-1,411.37253.64293.52339.67393.08454.89526.42609.19
Capital Expenditure -5.21-4.72-4.71-2.98-7.01-8.11-9.38-10.86-12.56-14.54-16.82
Free Cash Flow 1,062.4359.35422.85-1,414.35246.63285.41330.29382.23442.33511.88592.37
WACC
PV LFCF 234.31257.60283.21311.36342.32376.35413.76
SUM PV LFCF 1,913.45

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.26
Free cash flow (t + 1) 604.21
Terminal Value 18,534.15
Present Value of Terminal Value 14,343.52

Intrinsic Value

Enterprise Value 16,256.97
Net Debt 2,376.11
Equity Value 13,880.86
Shares Outstanding 31.53
Equity Value Per Share 440.20