Discounted Cash Flow (DCF) Analysis Levered

Welltower Inc. (WELL)

$80.42

+1.77 (+2.25%)
All numbers are in Millions, Currency in USD
Stock DCF: 112.20 | 80.42 | undervalue

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 4,671.095,100.404,586.544,709.485,860.626,245.066,654.737,091.277,556.448,052.13
Revenue (%)
Operating Cash Flow 1,583.941,535.971,364.761,275.331,328.711,792.731,910.332,035.642,169.182,311.47
Operating Cash Flow (%)
Capital Expenditure 1,381.162,327.16-17.47-19.351,090.131,161.641,237.841,319.041,405.561,497.77
Capital Expenditure (%)
Free Cash Flow 2,965.113,863.131,347.281,255.972,418.832,954.363,148.173,354.683,574.743,809.24

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 4,671.095,100.404,586.544,709.485,860.626,245.066,654.737,091.277,556.448,052.13
Operating Cash Flow 1,583.941,535.971,364.761,275.331,328.711,792.731,910.332,035.642,169.182,311.47
Capital Expenditure 1,381.162,327.16-17.47-19.351,090.131,161.641,237.841,319.041,405.561,497.77
Free Cash Flow 2,965.113,863.131,347.281,255.972,418.832,954.363,148.173,354.683,574.743,809.24
WACC
PV LFCF 2,398.842,384.742,370.722,356.782,342.92
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