DCF Tool

MAR

marriott international is the world's largest hotel company based in bethesda, maryland, usa, with more than 6,500 properties in 127 countries and reported revenues of nearly $14 billion in fiscal year 2015. its heritage can be traced to a root beer stand opened in washington, d.c., in 1927 by j. willard and alice s. marriott. the company operates and franchises hotels and licenses vacation ownership resorts under 30 brands. marriott international has more than 500,000 people working worldwide at managed or franchised properties, as well as at corporate offices. the company has been consistently recognized as a top employer and for its superior business ethics. marriott international is an equal opportunity employer committed to hiring a diverse workforce and sustaining an inclusive culture. marriott international does not discriminate on the basis of disability, veteran status or any other basis protected under federal, state or local laws. careers websites*: http://marriott.com/caree
Analysis Results
Intrinsic Value $558.52
Latest Price $251.06
Relative Value 55% 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 34.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 34.2%, 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)
2024 3.86 3.57
2025 5.18 4.44
2026 6.95 5.51
2027 9.33 6.84
2028 12.5 8.5
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 211 billion. This corresponds to a present value of 133 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 28.9 billion. Adding in the terminal value gives a total present value of 161 billion.

There are presently 289.0 million outstanding shares, so the intrinsic value per share is 558.52.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,311,000,000
Current Cash 338,000,000
Current Liabilities 7,762,000,000
Current Debt 553,000,000
Non-Cash Working Capital (NCWC) -4,236,000,000
Change in NCWC -387,000,000
EBIT 3,933,000,000
Tax Provision 295,000,000
Depreciation and Amortization 277,000,000
Capital Expenditure -452,000,000
Unlevered Free Cash Flow 3,027,531,971
Current Assets 3,313,000,000
Current Cash 507,000,000
Current Liabilities 7,339,000,000
Current Debt 684,000,000
Non-Cash Working Capital (NCWC) -3,849,000,000
Change in NCWC -480,000,000
EBIT 3,492,000,000
Tax Provision 756,000,000
Depreciation and Amortization 282,000,000
Capital Expenditure -332,000,000
Unlevered Free Cash Flow 2,114,231,213
Current Assets 3,626,000,000
Current Cash 1,393,000,000
Current Liabilities 6,407,000,000
Current Debt 805,000,000
Non-Cash Working Capital (NCWC) -3,369,000,000
Change in NCWC -738,000,000
EBIT 1,734,000,000
Tax Provision 81,000,000
Depreciation and Amortization 295,000,000
Capital Expenditure -183,000,000
Unlevered Free Cash Flow 988,971,186
Current Assets 2,825,000,000
Current Cash 877,000,000
Current Liabilities 5,752,000,000
Current Debt 1,173,000,000
Non-Cash Working Capital (NCWC) -2,631,000,000
Change in NCWC 167,000,000
EBIT 210,000,000
Tax Provision -199,000,000
Depreciation and Amortization 478,000,000
Capital Expenditure -135,000,000
Unlevered Free Cash Flow 720,000,000
Current Assets 3,127,000,000
Current Cash 225,000,000
Current Liabilities 6,677,000,000
Current Debt 977,000,000
Non-Cash Working Capital (NCWC) -2,798,000,000
Change in NCWC 416,000,000
EBIT 1,951,000,000
Tax Provision 326,000,000
Depreciation and Amortization 403,000,000
Capital Expenditure -653,000,000
Unlevered Free Cash Flow 1,719,235,146
Current Assets 2,706,000,000
Current Cash 316,000,000
Current Liabilities 6,437,000,000
Current Debt 833,000,000
Non-Cash Working Capital (NCWC) -3,214,000,000
Change in NCWC 34,000,000
EBIT 2,624,000,000
Tax Provision 438,000,000
Depreciation and Amortization 284,000,000
Capital Expenditure -556,000,000
Unlevered Free Cash Flow 1,895,888,272
Current Assets 2,747,000,000
Current Cash 383,000,000
Current Liabilities 6,010,000,000
Current Debt 398,000,000
Non-Cash Working Capital (NCWC) -3,248,000,000
Change in NCWC -923,000,000
EBIT 2,557,000,000
Tax Provision 1,464,000,000
Depreciation and Amortization 290,000,000
Capital Expenditure -240,000,000
Unlevered Free Cash Flow 364,025,387
Current Assets 3,371,000,000
Current Cash 858,000,000
Current Liabilities 5,147,000,000
Current Debt 309,000,000
Non-Cash Working Capital (NCWC) -2,325,000,000
Change in NCWC -680,000,000
EBIT 1,764,000,000
Tax Provision 404,000,000
Depreciation and Amortization 168,000,000
Capital Expenditure -199,000,000
Unlevered Free Cash Flow 451,094,594
Current Assets 1,384,000,000
Current Cash 96,000,000
Current Liabilities 3,233,000,000
Current Debt 300,000,000
Non-Cash Working Capital (NCWC) -1,645,000,000
Change in NCWC -726,000,000
EBIT 1,350,000,000
Tax Provision 396,000,000
Depreciation and Amortization 139,000,000
Capital Expenditure -305,000,000
Unlevered Free Cash Flow 32,023,904
Current Assets 1,921,000,000
Current Cash 104,000,000
Current Liabilities 3,060,000,000
Current Debt 324,000,000
Non-Cash Working Capital (NCWC) -919,000,000
Change in NCWC -27,000,000
EBIT 1,159,000,000
Tax Provision 335,000,000
Depreciation and Amortization 148,000,000
Capital Expenditure -411,000,000
Unlevered Free Cash Flow 512,138,786
Current Assets 1,903,000,000
Current Cash 126,000,000
Current Liabilities 2,675,000,000
Current Debt 6,000,000
Non-Cash Working Capital (NCWC) -892,000,000
Change in NCWC 87,000,000
EBIT 983,000,000
Tax Provision 271,000,000
Depreciation and Amortization 127,000,000
Capital Expenditure -404,000,000
Unlevered Free Cash Flow 496,017,837
Current Assets 1,475,000,000
Current Cash 88,000,000
Current Liabilities 2,773,000,000
Current Debt 407,000,000
Non-Cash Working Capital (NCWC) -979,000,000
Change in NCWC 2,000,000
EBIT 927,000,000
Tax Provision 278,000,000
Depreciation and Amortization 145,000,000
Capital Expenditure -437,000,000
Unlevered Free Cash Flow 333,459,363

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.