Discounted Cash Flow (DCF) Analysis Unlevered

Walker & Dunlop, Inc. (WD)

$94.52

+0.58 (+0.62%)

All numbers are in Millions, Currency in USD

Stock DCF: 406.31 | 94.52 | undervalue

Operating Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	711.86	725.25	817.22	1,083.71	1,254.11	1,451.30	1,679.50	1,943.59	2,249.19	2,602.85	3,012.12
Revenue (%)
EBITDA	373.95	365.61	397.33	508.05	622.17	720	833.21	964.23	1,115.84	1,291.29	1,494.34
EBITDA (%)
EBIT	242.70	223.48	244.85	339.04	395.53	457.72	529.69	612.98	709.37	820.91	949.98
EBIT (%)
Depreciation	131.25	142.13	152.47	169.01	226.64	262.28	303.52	351.25	406.48	470.39	544.35
Depreciation (%)

Balance Sheet Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	191.22	90.06	120.68	321.10	262.35	303.60	351.34	406.58	470.51	544.50	630.11
Total Cash (%)
Account Receivables	1,060.03	1,622.06	1,382.72	2,875.33	2,530.44	2,928.33	3,388.77	3,921.62	4,538.25	5,251.84	6,077.63
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	130.48	187.41	180.48	239.34	276.97	320.52	370.92	429.24	496.73	574.84	665.22
Accounts Payable (%)
Capital Expenditure	-5.21	-4.72	-4.71	-2.98	-7.01	-8.11	-9.38	-10.86	-12.56	-14.54	-16.82
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 94.52
Beta	1.290
Diluted Shares Outstanding	31.53
Cost of Debt
Tax Rate	24.51
After-tax Cost of Debt	0.23%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.608
Total Debt	2,681.75
Total Equity	2,980.50
Total Capital	5,662.25
Debt Weighting	47.36
Equity Weighting	52.64
Wacc

Build Up Free Cash

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	711.86	725.25	817.22	1,083.71	1,254.11	1,451.30	1,679.50	1,943.59	2,249.19	2,602.85	3,012.12
EBITDA	373.95	365.61	397.33	508.05	622.17	720	833.21	964.23	1,115.84	1,291.29	1,494.34
EBIT	242.70	223.48	244.85	339.04	395.53	457.72	529.69	612.98	709.37	820.91	949.98
Tax Rate	9.64%	24.15%	24.74%	25.46%	21.70%	24.51%	21.70%	21.70%	21.70%	21.70%	21.70%
EBIAT	219.29	169.50	184.29	252.72	309.69	345.53	414.74	479.96	555.43	642.76	743.83
Depreciation	131.25	142.13	152.47	169.01	226.64	262.28	303.52	351.25	406.48	470.39	544.35
Accounts Receivable	-	-562.03	239.34	-1,492.61	344.89	-397.88	-460.45	-532.85	-616.63	-713.59	-825.79
Inventories	-	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	56.93	-6.92	58.85	37.63	43.55	50.40	58.32	67.49	78.11	90.39
Capital Expenditure	-5.21	-4.72	-4.71	-2.98	-7.01	-9.21	-9.38	-10.86	-12.56	-14.54	-16.82
UFCF	345.33	-198.19	564.46	-1,015.01	911.86	245.37	298.83	345.82	400.20	463.13	535.95
WACC
PV UFCF					911.86	233.33	270.23	297.37	327.25	360.12	396.30
SUM PV UFCF											1,736.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.16
Free cash flow (t + 1)	546.67
Terminal Value	17,299.59
Present Value of Terminal Value	13,451.88

Intrinsic Value

Enterprise Value	15,188.35
Net Debt	2,376.11
Equity Value	12,812.24
Shares Outstanding	31.53
Equity Value Per Share	406.31