Discounted Cash Flow (DCF) Analysis Levered

Welltower Inc. (WELL)

$87.71

+0.21 (+0.24%)
All numbers are in Millions, Currency in USD
Stock DCF: 106.94 | 87.71 | 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 4,299.104,671.095,100.404,586.544,709.484,832.504,958.745,088.285,221.195,357.59
Revenue (%)
Operating Cash Flow 1,434.181,583.941,535.971,364.761,275.331,490.531,529.471,569.421,610.421,652.49
Operating Cash Flow (%)
Capital Expenditure 1,145.301,381.162,327.16-17.47-19.35976.591,002.101,028.281,055.141,082.70
Capital Expenditure (%)
Free Cash Flow 2,579.482,965.113,863.131,347.281,255.972,467.132,531.572,597.702,665.562,735.19

Weighted Average Cost Of Capital

Share price $ 87.71
Beta 0.973
Diluted Shares Outstanding 417.39
Cost of Debt
Tax Rate -96.86
After-tax Cost of Debt 3.34%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.450
Total Debt 14,676.90
Total Equity 36,609.01
Total Capital 51,285.91
Debt Weighting 28.62
Equity Weighting 71.38
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 4,299.104,671.095,100.404,586.544,709.484,832.504,958.745,088.285,221.195,357.59
Operating Cash Flow 1,434.181,583.941,535.971,364.761,275.331,490.531,529.471,569.421,610.421,652.49
Capital Expenditure 1,145.301,381.162,327.16-17.47-19.35976.591,002.101,028.281,055.141,082.70
Free Cash Flow 2,579.482,965.113,863.131,347.281,255.972,467.132,531.572,597.702,665.562,735.19
WACC
PV LFCF 2,321.562,241.662,164.502,0902,018.06
SUM PV LFCF 10,835.78

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.27
Free cash flow (t + 1) 2,789.90
Terminal Value 65,337.17
Present Value of Terminal Value 48,206.65

Intrinsic Value

Enterprise Value 59,042.43
Net Debt 14,407.63
Equity Value 44,634.79
Shares Outstanding 417.39
Equity Value Per Share 106.94