DCF Tool


LGI Homes Inc – New Single-Family Housing Construction (except For-Sale Builders)
based in the woodlands, texas, lgi homes is a publicly-traded homebuilder that has been making the dream of homeownership come true for buyers since 2003. our beautiful new homes, offered in amenity-rich communities conveniently located near major metropolitan areas, give the best in location, affordability and lifestyle to our homebuyers. our mission is simple: give first-time and long-time homebuyers quality homes at affordable prices. we are able to pass through savings to our customers because we procure and develop our own land, maximizing efficiencies and keeping costs low. our communities are located close to the urban centers where people work and play, while allowing our residents to enjoy the slower pace, open space and reduced expense that exists just a short distance from the city. we consider our communities the best of both worlds: where affordable homeownership meets the vibrancy and attractions of the greater metropolitan area. in addition to our presence in several tex
Analysis Results
Intrinsic Value $4,186.67
Latest Price $121.48
Relative Value 97% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
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 27.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 27.9%, 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)
2023 1.31 1.27
2024 1.68 1.58
2025 2.14 1.96
2026 2.74 2.44
2027 3.51 3.03
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 105 billion. This corresponds to a present value of 88.4 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 10.3 billion. Adding in the terminal value gives a total present value of 98.7 billion.

There are presently 23.6 million outstanding shares, so the intrinsic value per share is 4186.67.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,955,437,000
Current Cash 31,998,000
Current Liabilities 340,934,000
Current Debt 141,792,000
Non-Cash Working Capital (NCWC) 2,724,297,000
Change in NCWC 716,096,000
EBIT 390,107,000
Tax Provision 91,549,000
Depreciation and Amortization 1,576,000
Capital Expenditure -1,187,000
Unlevered Free Cash Flow 1,021,175,738
Current Assets 2,194,327,000
Current Cash 50,514,000
Current Liabilities 135,612,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,008,201,000
Change in NCWC 459,016,000
EBIT 547,698,000
Tax Provision 113,130,000
Depreciation and Amortization 1,154,000
Capital Expenditure -1,729,000
Unlevered Free Cash Flow 891,982,904
Current Assets 1,721,370,000
Current Cash 35,942,000
Current Liabilities 136,243,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,549,185,000
Change in NCWC 100,552,000
EBIT 364,710,000
Tax Provision 43,954,000
Depreciation and Amortization 710,000
Capital Expenditure -2,692,000
Unlevered Free Cash Flow 419,701,076
Current Assets 1,594,359,000
Current Cash 38,345,000
Current Liabilities 107,381,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,448,633,000
Change in NCWC 236,932,000
EBIT 227,538,000
Tax Provision 53,224,000
Depreciation and Amortization 643,000
Capital Expenditure -734,000
Unlevered Free Cash Flow 412,140,816
Current Assets 1,333,481,000
Current Cash 46,624,000
Current Liabilities 75,156,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,211,701,000
Change in NCWC 338,558,000
EBIT 200,111,000
Tax Provision 43,812,000
Depreciation and Amortization 711,000
Capital Expenditure -475,000
Unlevered Free Cash Flow 494,870,086
Current Assets 1,045,406,000
Current Cash 67,571,000
Current Liabilities 104,692,000
Current Debt 0
Non-Cash Working Capital (NCWC) 873,143,000
Change in NCWC 186,530,000
EBIT 169,801,000
Tax Provision 58,096,000
Depreciation and Amortization 791,000
Capital Expenditure -518,000
Unlevered Free Cash Flow 299,050,652
Current Assets 789,885,000
Current Cash 49,518,000
Current Liabilities 53,754,000
Current Debt 0
Non-Cash Working Capital (NCWC) 686,613,000
Change in NCWC 185,795,000
EBIT 111,471,000
Tax Provision 38,641,000
Depreciation and Amortization 1,089,000
Capital Expenditure -722,000
Unlevered Free Cash Flow 259,740,195
Current Assets 597,359,000
Current Cash 37,568,000
Current Liabilities 58,973,000
Current Debt 0
Non-Cash Working Capital (NCWC) 500,818,000
Change in NCWC 154,190,000
EBIT 79,674,000
Tax Provision 27,450,000
Depreciation and Amortization 883,000
Capital Expenditure -1,117,000
Unlevered Free Cash Flow 206,387,208

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