DCF Tool

LEN

Lennar Corp. – New Housing For-Sale Builders
Lennar Corporation, founded in 1954, is one of the nation's leading builders of quality homes for all generations. Lennar builds affordable, move-up and active adult homes primarily under the Lennar brand name. Lennar's Financial Services segment provides mortgage financing, title and closing services primarily for buyers of Lennar's homes and, through LMF Commercial, originates mortgage loans secured primarily by commercial real estate properties throughout the United States. Lennar's Multifamily segment is a nationwide developer of high-quality multifamily rental properties. LENX drives Lennar's technology, innovation and strategic investments.
Analysis Results
Intrinsic Value $1,725.79
Latest Price $103.47
Relative Value 94% 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 20.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 20.6%, 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)
2023 7.18 6.98
2024 8.66 8.2
2025 10.4 9.62
2026 12.6 11.3
2027 15.2 13.2
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 455 billion. This corresponds to a present value of 386 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 49.3 billion. Adding in the terminal value gives a total present value of 436 billion.

There are presently 252.0 million outstanding shares, so the intrinsic value per share is 1725.79.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 30,684,206,000
Current Cash 4,633,951,000
Current Liabilities 5,718,772,000
Current Debt 0
Non-Cash Working Capital (NCWC) 20,331,483,000
Change in NCWC 798,499,000
EBIT 6,665,144,000
Tax Provision 1,366,065,000
Depreciation and Amortization 87,075,000
Capital Expenditure -57,214,000
Unlevered Free Cash Flow 5,979,675,747
Current Assets 26,308,922,000
Current Cash 2,752,063,000
Current Liabilities 4,023,875,000
Current Debt 0
Non-Cash Working Capital (NCWC) 19,532,984,000
Change in NCWC 1,629,259,000
EBIT 5,135,216,000
Tax Provision 1,362,509,000
Depreciation and Amortization 85,954,000
Capital Expenditure -65,172,000
Unlevered Free Cash Flow 5,582,866,850
Current Assets 22,313,411,000
Current Cash 1,988,387,000
Current Liabilities 2,421,299,000
Current Debt 0
Non-Cash Working Capital (NCWC) 17,903,725,000
Change in NCWC 1,030,113,000
EBIT 2,796,563,000
Tax Provision 600,001,000
Depreciation and Amortization 91,821,000
Capital Expenditure -64,480,250
Unlevered Free Cash Flow 3,264,816,630
Current Assets 22,167,225,000
Current Cash 1,209,543,000
Current Liabilities 3,322,533,000
Current Debt 36,125,000
Non-Cash Working Capital (NCWC) 17,671,274,000
Change in NCWC 846,860,000
EBIT 2,465,630,000
Tax Provision 592,173,000
Depreciation and Amortization 92,200,000
Capital Expenditure -86,497,000
Unlevered Free Cash Flow 2,718,396,626
Current Assets 21,244,231,000
Current Cash 1,345,639,000
Current Liabilities 3,074,178,000
Current Debt 0
Non-Cash Working Capital (NCWC) 16,824,414,000
Change in NCWC 6,229,259,000
EBIT 1,913,416,000
Tax Provision 545,171,000
Depreciation and Amortization 91,181,000
Capital Expenditure -130,439,000
Unlevered Free Cash Flow 7,642,398,619
Current Assets 15,584,656,000
Current Cash 2,291,601,000
Current Liabilities 2,697,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) 10,595,155,000
Change in NCWC 1,361,825,000
EBIT 1,306,837,000
Tax Provision 417,857,000
Depreciation and Amortization 66,324,000
Capital Expenditure -111,773,000
Unlevered Free Cash Flow 2,164,179,762
Current Assets 12,696,156,000
Current Cash 1,056,738,000
Current Liabilities 2,406,088,000
Current Debt 0
Non-Cash Working Capital (NCWC) 9,233,330,000
Change in NCWC 475,750,000
EBIT 1,277,718,000
Tax Provision 417,378,000
Depreciation and Amortization 50,219,000
Capital Expenditure -76,439,000
Unlevered Free Cash Flow 1,326,418,380
Current Assets 11,883,347,000
Current Cash 901,449,000
Current Liabilities 2,224,318,000
Current Debt 0
Non-Cash Working Capital (NCWC) 8,757,580,000
Change in NCWC 941,254,000
EBIT 1,203,454,000
Tax Provision 390,416,000
Depreciation and Amortization 43,666,000
Capital Expenditure -91,355,000
Unlevered Free Cash Flow 1,708,591,848
Current Assets 10,541,459,000
Current Cash 887,915,000
Current Liabilities 1,837,218,000
Current Debt 0
Non-Cash Working Capital (NCWC) 7,816,326,000
Change in NCWC 1,264,606,000
EBIT 998,809,000
Tax Provision 341,091,000
Depreciation and Amortization 38,542,000
Capital Expenditure -22,599,000
Unlevered Free Cash Flow 1,928,058,369
Current Assets 8,747,621,000
Current Cash 695,943,000
Current Liabilities 1,499,958,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,551,720,000
Change in NCWC 1,339,839,000
EBIT 707,708,000
Tax Provision 177,015,000
Depreciation and Amortization 30,349,000
Capital Expenditure -9,407,000
Unlevered Free Cash Flow 1,884,785,524

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