Discounted Cash Flow (DCF) Analysis Levered
Welltower Inc. (WELL)
$66.17
-3.22 (-4.64%)
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 | $ 66.17 |
|---|---|
| Beta | 1.043 |
| 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 | 8.424 |
| Total Debt | 14,963.91 |
| Total Equity | 30,779.50 |
| Total Capital | 45,743.42 |
| Debt Weighting | 32.71 |
| Equity Weighting | 67.29 |
| 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 | 2,767.04 | 2,761.59 | 2,756.15 | 2,750.73 | 2,745.31 | |||||
| SUM PV LFCF | 13,780.82 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.77 |
| Free cash flow (t + 1) | 3,885.42 |
| Terminal Value | 81,455.41 |
| Present Value of Terminal Value | 58,704.82 |
Intrinsic Value
| Enterprise Value | 72,485.63 |
|---|---|
| Net Debt | 14,332.23 |
| Equity Value | 58,153.40 |
| Shares Outstanding | 465.16 |
| Equity Value Per Share | 125.02 |