DCF Tool

INVH

Invitation Homes Inc – Lessors of Residential Buildings and Dwellings
Invitation Homes is the nation's premier single-family home leasing company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The Company's mission, 'Together with you, it makes a house a home,' reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents' living experiences.
Analysis Results
Intrinsic Value $53.59
Latest Price $39.81
Relative Value 26% 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 14.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.0%, 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 1.01 0.952
2023 1.15 1.02
2024 1.32 1.09
2025 1.5 1.17
2026 1.71 1.25
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 39.5 billion. This corresponds to a present value of 27.2 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.49 billion. Adding in the terminal value gives a total present value of 32.7 billion.

There are presently 610.0 million outstanding shares, so the intrinsic value per share is 53.59.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 897,821,000
Current Cash 610,166,000
Current Liabilities 358,800,000
Current Debt 0
Non-Cash Working Capital (NCWC) -71,145,000
Change in NCWC -38,859,000
EBIT 549,360,000
Tax Provision 0
Depreciation and Amortization 592,135,000
Capital Expenditure -240,240,000
Unlevered Free Cash Flow 862,396,000
Current Assets 488,371,000
Current Cash 213,422,000
Current Liabilities 307,235,000
Current Debt 0
Non-Cash Working Capital (NCWC) -32,286,000
Change in NCWC 50,274,000
EBIT 467,837,000
Tax Provision 0
Depreciation and Amortization 552,530,000
Capital Expenditure -271,053,000
Unlevered Free Cash Flow 799,588,000
Current Assets 343,595,000
Current Cash 92,258,000
Current Liabilities 333,897,000
Current Debt 0
Non-Cash Working Capital (NCWC) -82,560,000
Change in NCWC -43,100,000
EBIT 425,091,000
Tax Provision 0
Depreciation and Amortization 533,719,000
Capital Expenditure -221,681,000
Unlevered Free Cash Flow 694,029,000
Current Assets 424,078,000
Current Cash 144,940,000
Current Liabilities 318,598,000
Current Debt 0
Non-Cash Working Capital (NCWC) -39,460,000
Change in NCWC 1,564,000
EBIT 342,761,000
Tax Provision 0
Depreciation and Amortization 560,541,000
Capital Expenditure -191,448,000
Unlevered Free Cash Flow 713,418,000
Current Assets 478,956,000
Current Cash 179,878,000
Current Liabilities 340,102,000
Current Debt 0
Non-Cash Working Capital (NCWC) -41,024,000
Change in NCWC -122,038,000
EBIT 142,300,000
Tax Provision 0
Depreciation and Amortization 309,578,000
Capital Expenditure -105,167,000
Unlevered Free Cash Flow 224,673,000

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