DCF Tool

MHO

MI Homes Inc. – New Single-Family Housing Construction (except For-Sale Builders)
M/I Homes, Inc. is one of the nation's leading builders of single-family homes, having sold over 127,650 homes. The Company's homes are marketed and sold primarily under the trade names M/I Homes and Showcase Collection (exclusively by M/I Homes), and are also currently sold under the name Hans Hagen Homes in the Minneapolis/St. Paul, Minnesota market. The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Detroit, Michigan; Tampa, Sarasota and Orlando, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; and Charlotte and Raleigh, North Carolina.
Analysis Results
Intrinsic Value $530.66
Latest Price $46.52
Relative Value 91% undervalued
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Cash Flow (Millions)
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 11.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.0%, 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 (million) Present value (million)
2022 419 396
2023 465 416
2024 516 437
2025 573 459
2026 636 482
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 17500 million. This corresponds to a present value of 12500 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2190 million. Adding in the terminal value gives a total present value of 14700 million.

There are presently 27.8 million outstanding shares, so the intrinsic value per share is 530.66.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,964,457,000
Current Cash 236,368,000
Current Liabilities 641,386,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,086,703,000
Change in NCWC 490,324,000
EBIT 516,430,000
Tax Provision 112,246,000
Depreciation and Amortization 12,691,000
Capital Expenditure -25,301,000
Unlevered Free Cash Flow 880,285,017
Current Assets 2,411,711,000
Current Cash 260,810,000
Current Liabilities 554,522,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,596,379,000
Change in NCWC 7,900,000
EBIT 325,235,000
Tax Provision 70,169,000
Depreciation and Amortization 12,636,000
Capital Expenditure -11,677,000
Unlevered Free Cash Flow 260,486,743
Current Assets 1,930,834,000
Current Cash 6,083,000
Current Liabilities 336,272,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,588,479,000
Change in NCWC 92,802,000
EBIT 171,027,000
Tax Provision 38,438,000
Depreciation and Amortization 11,691,000
Capital Expenditure -4,526,000
Unlevered Free Cash Flow 231,397,940
Current Assets 1,865,640,000
Current Cash 21,529,000
Current Liabilities 348,434,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,495,677,000
Change in NCWC 255,923,000
EBIT 166,013,000
Tax Provision 33,626,000
Depreciation and Amortization 10,956,000
Capital Expenditure -8,141,000
Unlevered Free Cash Flow 385,240,824
Current Assets 1,737,857,000
Current Cash 151,703,000
Current Liabilities 346,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,239,754,000
Change in NCWC 156,067,000
EBIT 144,122,000
Tax Provision 48,243,000
Depreciation and Amortization 9,630,000
Capital Expenditure -8,799,000
Unlevered Free Cash Flow 243,235,371
Current Assets 1,404,395,000
Current Cash 34,441,000
Current Liabilities 286,267,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,083,687,000
Change in NCWC 78,866,000
EBIT 113,375,000
Tax Provision 35,176,000
Depreciation and Amortization 8,552,000
Capital Expenditure -13,106,000
Unlevered Free Cash Flow 144,236,773
Current Assets 1,252,144,000
Current Cash 10,205,000
Current Liabilities 237,118,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,004,821,000
Change in NCWC 162,142,000
EBIT 114,314,000
Tax Provision 35,166,000
Depreciation and Amortization 6,612,000
Capital Expenditure -3,659,000
Unlevered Free Cash Flow 233,164,753
Current Assets 1,033,869,000
Current Cash 15,535,000
Current Liabilities 175,655,000
Current Debt 0
Non-Cash Working Capital (NCWC) 842,679,000
Change in NCWC 222,455,000
EBIT 86,558,000
Tax Provision 18,947,000
Depreciation and Amortization 5,175,000
Capital Expenditure -2,946,000
Unlevered Free Cash Flow 287,724,528
Current Assets 915,371,000
Current Cash 128,725,000
Current Liabilities 166,422,000
Current Debt 0
Non-Cash Working Capital (NCWC) 620,224,000
Change in NCWC 133,231,000
EBIT 63,422,000
Tax Provision -110,088,000
Depreciation and Amortization 4,973,000
Capital Expenditure -2,382,000
Unlevered Free Cash Flow 199,244,000
Current Assets 782,116,000
Current Cash 145,498,000
Current Liabilities 149,625,000
Current Debt 0
Non-Cash Working Capital (NCWC) 486,993,000
Change in NCWC 12,328,000
EBIT 30,911,000
Tax Provision -588,000
Depreciation and Amortization 7,158,000
Capital Expenditure -933,000
Unlevered Free Cash Flow 49,464,000

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