Discounted Cash Flow (DCF) Analysis Levered
Welltower Inc. (WELL)
$80.42
+1.77 (+2.25%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 4,671.09 | 5,100.40 | 4,586.54 | 4,709.48 | 5,860.62 | 6,245.06 | 6,654.73 | 7,091.27 | 7,556.44 | 8,052.13 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,583.94 | 1,535.97 | 1,364.76 | 1,275.33 | 1,328.71 | 1,792.73 | 1,910.33 | 2,035.64 | 2,169.18 | 2,311.47 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | 1,381.16 | 2,327.16 | -17.47 | -19.35 | 1,090.13 | 1,161.64 | 1,237.84 | 1,319.04 | 1,405.56 | 1,497.77 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 2,965.11 | 3,863.13 | 1,347.28 | 1,255.97 | 2,418.83 | 2,954.36 | 3,148.17 | 3,354.68 | 3,574.74 | 3,809.24 |
Weighted Average Cost Of Capital
| Share price | $ 80.42 |
|---|---|
| Beta | 1.048 |
| Diluted Shares Outstanding | 465.16 |
| Cost of Debt | |
| Tax Rate | 4.88 |
| After-tax Cost of Debt | 3.37% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.722 |
| Total Debt | 14,963.91 |
| Total Equity | 37,408.01 |
| Total Capital | 52,371.92 |
| Debt Weighting | 28.57 |
| Equity Weighting | 71.43 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 4,671.09 | 5,100.40 | 4,586.54 | 4,709.48 | 5,860.62 | 6,245.06 | 6,654.73 | 7,091.27 | 7,556.44 | 8,052.13 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,583.94 | 1,535.97 | 1,364.76 | 1,275.33 | 1,328.71 | 1,792.73 | 1,910.33 | 2,035.64 | 2,169.18 | 2,311.47 |
| Capital Expenditure | 1,381.16 | 2,327.16 | -17.47 | -19.35 | 1,090.13 | 1,161.64 | 1,237.84 | 1,319.04 | 1,405.56 | 1,497.77 |
| Free Cash Flow | 2,965.11 | 3,863.13 | 1,347.28 | 1,255.97 | 2,418.83 | 2,954.36 | 3,148.17 | 3,354.68 | 3,574.74 | 3,809.24 |
| WACC | ||||||||||
| PV LFCF | 2,398.84 | 2,384.74 | 2,370.72 | 2,356.78 | 2,342.92 | |||||
| SUM PV LFCF | 13,619.88 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.19 |
| Free cash flow (t + 1) | 3,885.42 |
| Terminal Value | 74,863.64 |
| Present Value of Terminal Value | 52,905.35 |
Intrinsic Value
| Enterprise Value | 66,525.23 |
|---|---|
| Net Debt | 14,332.23 |
| Equity Value | 52,193 |
| Shares Outstanding | 465.16 |
| Equity Value Per Share | 112.20 |