Discounted Cash Flow (DCF) Analysis Unlevered

Host Hotels & Resorts, Inc. (HST)

$19.16

+0.42 (+2.24%)
All numbers are in Millions, Currency in USD
Stock DCF: 3.98 | 19.16 | overvalue

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 5,3875,5245,4691,6202,8902,959.103,029.853,102.303,176.473,252.42
Revenue (%)
EBITDA 1,5562,3511,837-94851761.54779.75798.39817.48837.03
EBITDA (%)
EBIT 8051,4071,161-75989105.76108.29110.88113.53116.25
EBIT (%)
Depreciation 751944676665762655.78671.46687.51703.95720.78
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 9131,5421,5732,3358491,462.611,497.581,533.391,570.051,607.59
Total Cash (%)
Account Receivables 7971632211354.2855.5856.9158.2759.66
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 2832932637185134.29137.50140.78144.15147.60
Accounts Payable (%)
Capital Expenditure -277-474-558-499-427-411.33-421.17-431.24-441.55-452.11
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 19.16
Beta 1.258
Diluted Shares Outstanding 710.30
Cost of Debt
Tax Rate 89.22
After-tax Cost of Debt 0.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.827
Total Debt 5,455
Total Equity 13,609.35
Total Capital 19,064.35
Debt Weighting 28.61
Equity Weighting 71.39
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 5,3875,5245,4691,6202,8902,959.103,029.853,102.303,176.473,252.42
EBITDA 1,5562,3511,837-94851761.54779.75798.39817.48837.03
EBIT 8051,4071,161-75989105.76108.29110.88113.53116.25
Tax Rate 13.36%16.45%4.37%23.83%89.22%29.44%29.44%29.44%29.44%29.44%
EBIAT 697.421,175.561,110.31-578.149.6074.6276.4078.2380.1082.02
Depreciation 751944676665762655.78671.46687.51703.95720.78
Accounts Receivable -8841-9158.72-1.30-1.33-1.36-1.39
Inventories ----------
Accounts Payable -10-30-1921449.293.213.293.373.45
Capital Expenditure -277-474-558-499-427-411.33-421.17-431.24-441.55-452.11
UFCF 1,171.421,663.561,206.31-563.14267.60427.07328.60336.46344.51352.74
WACC
PV UFCF 401.34290.21279.25268.70258.55
SUM PV UFCF 1,498.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.41
Free cash flow (t + 1) 359.80
Terminal Value 8,158.69
Present Value of Terminal Value 5,980.10

Intrinsic Value

Enterprise Value 7,478.15
Net Debt 4,648
Equity Value 2,830.15
Shares Outstanding 710.30
Equity Value Per Share 3.98