DCF Tool

CBRE

CBRE Group Inc – Offices of Real Estate Agents and Brokers
CBRE Group, Inc., a Fortune 500 and S&P 500 company headquartered in Dallas, is the world's largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. It routinely posts important information on its website, including corporate and investor presentations and financial information. It intends to use its website as a means of disclosing material, non-public information and for complying with its disclosure obligations under Regulation FD. Such disclosures will be included in the Investor Relations section of our website at https://ir.cbre.com. Accordingly, investors should monitor such portion of its website, in addition to following its press releases, Securities and Exchange Commission filings and public conference calls and webcasts.
Analysis Results
Intrinsic Value $74.55
Latest Price $67.51
Relative Value 9% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 6.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 6.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 1.46 1.35
2023 1.56 1.32
2024 1.65 1.29
2025 1.75 1.26
2026 1.86 1.23
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 28.7 billion. This corresponds to a present value of 17.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.45 billion. Adding in the terminal value gives a total present value of 23.9 billion.

There are presently 321.0 million outstanding shares, so the intrinsic value per share is 74.55.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 10,082,365,000
Current Cash 2,430,951,000
Current Liabilities 8,418,869,000
Current Debt 1,310,119,000
Non-Cash Working Capital (NCWC) 542,664,000
Change in NCWC -653,604,000
EBIT 2,256,164,000
Tax Provision 567,506,000
Depreciation and Amortization 525,871,000
Capital Expenditure -209,851,000
Unlevered Free Cash Flow 1,387,171,579
Current Assets 8,845,631,000
Current Cash 1,896,188,000
Current Liabilities 7,143,983,000
Current Debt 1,390,808,000
Non-Cash Working Capital (NCWC) 1,196,268,000
Change in NCWC 86,513,000
EBIT 1,184,596,000
Tax Provision 214,101,000
Depreciation and Amortization 501,728,000
Capital Expenditure -266,575,000
Unlevered Free Cash Flow 1,244,786,439
Current Assets 7,534,464,000
Current Cash 971,781,000
Current Liabilities 6,436,451,000
Current Debt 983,523,000
Non-Cash Working Capital (NCWC) 1,109,755,000
Change in NCWC -395,763,000
EBIT 1,510,587,000
Tax Provision 69,895,000
Depreciation and Amortization 439,224,000
Capital Expenditure -293,514,000
Unlevered Free Cash Flow 1,182,976,526
Current Assets 6,754,210,000
Current Cash 777,219,000
Current Liabilities 5,803,380,000
Current Debt 1,331,907,000
Non-Cash Working Capital (NCWC) 1,505,518,000
Change in NCWC 500,620,000
EBIT 1,412,653,000
Tax Provision 313,058,000
Depreciation and Amortization 451,988,000
Capital Expenditure -227,803,000
Unlevered Free Cash Flow 1,816,761,554
Current Assets 5,452,527,000
Current Cash 751,774,000
Current Liabilities 4,606,645,000
Current Debt 910,790,000
Non-Cash Working Capital (NCWC) 1,004,898,000
Change in NCWC -84,227,000
EBIT 1,281,649,000
Tax Provision 466,147,000
Depreciation and Amortization 406,114,000
Capital Expenditure -178,042,000
Unlevered Free Cash Flow 912,273,117
Current Assets 5,122,450,000
Current Cash 762,576,000
Current Liabilities 4,525,429,000
Current Debt 1,254,680,000
Non-Cash Working Capital (NCWC) 1,089,125,000
Change in NCWC -466,763,000
EBIT 1,012,838,000
Tax Provision 296,662,000
Depreciation and Amortization 366,927,000
Capital Expenditure -194,408,000
Unlevered Free Cash Flow 377,431,655
Current Assets 5,305,223,000
Current Cash 540,403,000
Current Liabilities 4,994,157,000
Current Debt 1,785,225,000
Non-Cash Working Capital (NCWC) 1,555,888,000
Change in NCWC 1,139,683,000
EBIT 3,632,402,000
Tax Provision 320,853,000
Depreciation and Amortization 314,096,000
Capital Expenditure -141,517,000
Unlevered Free Cash Flow 3,619,863,119
Current Assets 3,524,504,000
Current Cash 804,351,000
Current Liabilities 2,875,634,000
Current Debt 571,686,000
Non-Cash Working Capital (NCWC) 416,205,000
Change in NCWC 71,128,000
EBIT 893,968,000
Tax Provision 263,759,000
Depreciation and Amortization 265,101,000
Capital Expenditure -182,203,000
Unlevered Free Cash Flow 744,631,548
Current Assets 2,879,812,000
Current Cash 550,354,000
Current Liabilities 2,605,740,000
Current Debt 621,359,000
Non-Cash Working Capital (NCWC) 345,077,000
Change in NCWC -783,602,000
EBIT 810,347,000
Tax Provision 188,561,000
Depreciation and Amortization 191,270,000
Capital Expenditure -158,917,000
Unlevered Free Cash Flow -225,256,954
Current Assets 4,084,550,000
Current Cash 1,191,307,000
Current Liabilities 2,972,293,000
Current Debt 1,207,729,000
Non-Cash Working Capital (NCWC) 1,128,679,000
Change in NCWC 534,575,000
EBIT 668,855,000
Tax Provision 186,333,000
Depreciation and Amortization 170,905,000
Capital Expenditure -156,413,000
Unlevered Free Cash Flow 964,155,591

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