DCF Tool

LEN

one of the nation's leading homebuilders providing homes for first-time, move-up, luxury, urban and active adult buyers. lennar was founded in 1954 in miami, florida and currently builds in 19 states and more than 44 markets across the nation. lennar also provides financial services to our buyers through eagle home mortgage and north american title. lennar operates based on our founding principles of quality, value and integrity. we have also just relaunched our everything's included homes across the nation. please be sure to also check out the lennar associates and business partners group on linkedin as well.
Analysis Results
Intrinsic Value $510.76
Latest Price $159.90
Relative Value 69% 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 14.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.9%, 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)
2024 6.63 6.05
2025 7.61 6.35
2026 8.75 6.67
2027 10.1 7.0
2028 11.5 7.35
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 158 billion. This corresponds to a present value of 91.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 33.4 billion. Adding in the terminal value gives a total present value of 125 billion.

There are presently 245.0 million outstanding shares, so the intrinsic value per share is 510.76.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 31,817,174,000
Current Cash 6,313,058,000
Current Liabilities 6,336,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) 19,168,016,000
Change in NCWC -1,163,467,000
EBIT 5,221,949,000
Tax Provision 1,241,013,000
Depreciation and Amortization 110,164,000
Capital Expenditure -99,799,000
Unlevered Free Cash Flow 2,823,147,672
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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