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 711.86725.25817.221,083.711,254.111,451.301,679.501,943.592,249.192,602.853,012.12
Revenue (%)
EBITDA 373.95365.61397.33508.05622.17720833.21964.231,115.841,291.291,494.34
EBITDA (%)
EBIT 242.70223.48244.85339.04395.53457.72529.69612.98709.37820.91949.98
EBIT (%)
Depreciation 131.25142.13152.47169.01226.64262.28303.52351.25406.48470.39544.35
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 191.2290.06120.68321.10262.35303.60351.34406.58470.51544.50630.11
Total Cash (%)
Account Receivables 1,060.031,622.061,382.722,875.332,530.442,928.333,388.773,921.624,538.255,251.846,077.63
Account Receivables (%)
Inventories -----------
Inventories (%)
Accounts Payable 130.48187.41180.48239.34276.97320.52370.92429.24496.73574.84665.22
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 711.86725.25817.221,083.711,254.111,451.301,679.501,943.592,249.192,602.853,012.12
EBITDA 373.95365.61397.33508.05622.17720833.21964.231,115.841,291.291,494.34
EBIT 242.70223.48244.85339.04395.53457.72529.69612.98709.37820.91949.98
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 219.29169.50184.29252.72309.69345.53414.74479.96555.43642.76743.83
Depreciation 131.25142.13152.47169.01226.64262.28303.52351.25406.48470.39544.35
Accounts Receivable --562.03239.34-1,492.61344.89-397.88-460.45-532.85-616.63-713.59-825.79
Inventories -----------
Accounts Payable -56.93-6.9258.8537.6343.5550.4058.3267.4978.1190.39
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 345.33-198.19564.46-1,015.01911.86245.37298.83345.82400.20463.13535.95
WACC
PV UFCF 911.86233.33270.23297.37327.25360.12396.30
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