Discounted Cash Flow (DCF) Analysis Levered
Welltower Inc. (WELL)
$87.71
+0.21 (+0.24%)
All numbers are in Millions, Currency in USD
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 | 4,299.10 | 4,671.09 | 5,100.40 | 4,586.54 | 4,709.48 | 4,832.50 | 4,958.74 | 5,088.28 | 5,221.19 | 5,357.59 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,434.18 | 1,583.94 | 1,535.97 | 1,364.76 | 1,275.33 | 1,490.53 | 1,529.47 | 1,569.42 | 1,610.42 | 1,652.49 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | 1,145.30 | 1,381.16 | 2,327.16 | -17.47 | -19.35 | 976.59 | 1,002.10 | 1,028.28 | 1,055.14 | 1,082.70 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 2,579.48 | 2,965.11 | 3,863.13 | 1,347.28 | 1,255.97 | 2,467.13 | 2,531.57 | 2,597.70 | 2,665.56 | 2,735.19 |
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 | 4,299.10 | 4,671.09 | 5,100.40 | 4,586.54 | 4,709.48 | 4,832.50 | 4,958.74 | 5,088.28 | 5,221.19 | 5,357.59 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,434.18 | 1,583.94 | 1,535.97 | 1,364.76 | 1,275.33 | 1,490.53 | 1,529.47 | 1,569.42 | 1,610.42 | 1,652.49 |
| Capital Expenditure | 1,145.30 | 1,381.16 | 2,327.16 | -17.47 | -19.35 | 976.59 | 1,002.10 | 1,028.28 | 1,055.14 | 1,082.70 |
| Free Cash Flow | 2,579.48 | 2,965.11 | 3,863.13 | 1,347.28 | 1,255.97 | 2,467.13 | 2,531.57 | 2,597.70 | 2,665.56 | 2,735.19 |
| WACC | ||||||||||
| PV LFCF | 2,321.56 | 2,241.66 | 2,164.50 | 2,090 | 2,018.06 | |||||
| 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 |