Discounted Cash Flow (DCF) Analysis Unlevered

Equity Residential (EQR)

$71.82

-0.22 (-0.30%)
All numbers are in Millions, Currency in USD
Stock DCF: 82.92 | 71.82 | undervalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 2,471.412,578.432,701.072,571.702,4642,464.672,465.342,466.022,466.692,467.37
Revenue (%)
EBITDA 1,735.401,861.892,200.952,1122,457.622,000.222,000.772,001.322,001.862,002.41
EBITDA (%)
EBIT 987.821,071.771,358.171,279.561,606.241,216.381,216.711,217.041,217.381,217.71
EBIT (%)
Depreciation 747.58790.12842.78832.44851.38783.84784.06784.27784.49784.70
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 50.6547.4445.7542.59251.2885.9585.988686.0386.05
Total Cash (%)
Account Receivables ----------
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 114.77102.4794.35107.37107.01101.69101.71101.74101.77101.80
Accounts Payable (%)
Capital Expenditure -204.11-193.01-183.38-156.08-152.72-171.54-171.59-171.64-171.68-171.73
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 71.82
Beta 0.829
Diluted Shares Outstanding 388.37
Cost of Debt
Tax Rate 4.87
After-tax Cost of Debt 3.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.038
Total Debt 8,653.79
Total Equity 27,893.02
Total Capital 36,546.81
Debt Weighting 23.68
Equity Weighting 76.32
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 2,471.412,578.432,701.072,571.702,4642,464.672,465.342,466.022,466.692,467.37
EBITDA 1,735.401,861.892,200.952,1122,457.622,000.222,000.772,001.322,001.862,002.41
EBIT 987.821,071.771,358.171,279.561,606.241,216.381,216.711,217.041,217.381,217.71
Tax Rate 4.04%4.16%3.68%1.67%4.87%3.68%3.68%3.68%3.68%3.68%
EBIAT 947.921,027.201,308.221,258.241,528.081,171.591,171.921,172.241,172.561,172.88
Depreciation 747.58790.12842.78832.44851.38783.84784.06784.27784.49784.70
Accounts Receivable ----------
Inventories ----------
Accounts Payable --12.30-8.1213.02-0.35-5.330.030.030.030.03
Capital Expenditure -204.11-193.01-183.38-156.08-152.72-171.54-171.59-171.64-171.68-171.73
UFCF 1,491.381,612.011,959.501,947.622,226.401,778.571,784.411,784.901,785.391,785.87
WACC
PV UFCF 1,676.631,585.731,495.251,409.931,329.49
SUM PV UFCF 7,497.02

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.08
Free cash flow (t + 1) 1,821.59
Terminal Value 44,646.87
Present Value of Terminal Value 33,237.13

Intrinsic Value

Enterprise Value 40,734.15
Net Debt 8,529.96
Equity Value 32,204.19
Shares Outstanding 388.37
Equity Value Per Share 82.92