DCF Tool

NVR

NVR Inc. – New Single-Family Housing Construction (except For-Sale Builders)
NVR, Inc. operates in two business segments: homebuilding and mortgage banking. The homebuilding segment sells and builds homes under the Ryan Homes, NVHomes and Heartland Homes trade names, and operates in thirty-three metropolitan areas in fourteen states and Washington, D.C.
Analysis Results
Intrinsic Value $9,418.13
Latest Price $4,687.60
Relative Value 50% 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 16.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 16.0%, 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 (billion) Present value (billion)
2022 1.39 1.28
2023 1.61 1.36
2024 1.87 1.45
2025 2.17 1.55
2026 2.52 1.65
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 37.8 billion. This corresponds to a present value of 22.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 7.3 billion. Adding in the terminal value gives a total present value of 30.1 billion.

There are presently 3.2 million outstanding shares, so the intrinsic value per share is 9418.13.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,909,654,000
Current Cash 2,545,069,000
Current Liabilities 2,821,660,000
Current Debt 1,516,255,000
Non-Cash Working Capital (NCWC) 1,059,180,000
Change in NCWC -74,394,000
EBIT 1,591,990,000
Tax Provision 353,684,000
Depreciation and Amortization 19,463,000
Capital Expenditure -17,875,000
Unlevered Free Cash Flow 1,165,147,072
Current Assets 4,991,667,000
Current Cash 2,714,720,000
Current Liabilities 2,660,768,000
Current Debt 1,517,395,000
Non-Cash Working Capital (NCWC) 1,133,574,000
Change in NCWC 77,169,000
EBIT 1,079,447,000
Tax Provision 176,785,000
Depreciation and Amortization 21,992,000
Capital Expenditure -16,119,000
Unlevered Free Cash Flow 985,472,120
Current Assets 3,023,285,000
Current Cash 1,110,892,000
Current Liabilities 1,454,289,000
Current Debt 598,301,000
Non-Cash Working Capital (NCWC) 1,056,405,000
Change in NCWC 38,599,000
EBIT 1,050,130,000
Tax Provision 147,256,000
Depreciation and Amortization 20,818,000
Capital Expenditure -22,699,000
Unlevered Free Cash Flow 936,098,636
Current Assets 2,466,279,000
Current Cash 688,783,000
Current Liabilities 1,357,371,000
Current Debt 597,681,000
Non-Cash Working Capital (NCWC) 1,017,806,000
Change in NCWC 137,321,000
EBIT 983,768,000
Tax Provision 162,535,000
Depreciation and Amortization 20,168,000
Capital Expenditure -19,665,000
Unlevered Free Cash Flow 954,986,393
Current Assets 2,312,293,000
Current Cash 645,087,000
Current Liabilities 1,383,787,000
Current Debt 597,066,000
Non-Cash Working Capital (NCWC) 880,485,000
Change in NCWC 122,437,000
EBIT 869,948,000
Tax Provision 309,390,000
Depreciation and Amortization 22,667,000
Capital Expenditure -20,269,000
Unlevered Free Cash Flow 676,977,219
Current Assets 1,875,961,000
Current Cash 375,748,000
Current Liabilities 1,338,620,000
Current Debt 596,455,000
Non-Cash Working Capital (NCWC) 758,048,000
Change in NCWC 69,298,000
EBIT 682,318,000
Tax Provision 236,435,000
Depreciation and Amortization 22,269,000
Capital Expenditure -22,369,000
Unlevered Free Cash Flow 507,712,784
Current Assets 1,761,887,000
Current Cash 397,522,000
Current Liabilities 1,274,875,000
Current Debt 599,260,000
Non-Cash Working Capital (NCWC) 688,750,000
Change in NCWC 199,653,000
EBIT 626,130,000
Tax Provision 220,285,000
Depreciation and Amortization 21,534,000
Capital Expenditure -18,277,000
Unlevered Free Cash Flow 600,385,651
Current Assets 1,630,109,000
Current Cash 514,780,000
Current Liabilities 1,225,462,000
Current Debt 599,230,000
Non-Cash Working Capital (NCWC) 489,097,000
Change in NCWC 129,761,000
EBIT 476,137,000
Tax Provision 171,916,000
Depreciation and Amortization 17,614,000
Capital Expenditure -31,672,000
Unlevered Free Cash Flow 411,360,911
Current Assets 1,824,320,000
Current Cash 844,274,000
Current Liabilities 1,223,150,000
Current Debt 602,440,000
Non-Cash Working Capital (NCWC) 359,336,000
Change in NCWC -12,020,000
EBIT 440,536,000
Tax Provision 152,219,000
Depreciation and Amortization 13,391,000
Capital Expenditure -19,016,000
Unlevered Free Cash Flow 262,731,960
Current Assets 2,029,082,000
Current Cash 1,139,103,000
Current Liabilities 1,122,185,000
Current Debt 603,562,000
Non-Cash Working Capital (NCWC) 371,356,000
Change in NCWC -28,624,000
EBIT 282,060,000
Tax Provision 94,489,000
Depreciation and Amortization 8,100,000
Capital Expenditure -12,365,000
Unlevered Free Cash Flow 152,283,338

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