DCF Tool

PHM

PulteGroup Inc – New Single-Family Housing Construction (except For-Sale Builders)
PulteGroup, Inc., based in Atlanta, Georgia, is one of America's largest homebuilding companies with operations in more than 40 markets throughout the country. Through its brand portfolio that includes Centex, Pulte Homes, Del Webb, DiVosta Homes, American West and John Wieland Homes and Neighborhoods, the company is one of the industry's most versatile homebuilders able to meet the needs of multiple buyer groups and respond to changing consumer demand. PulteGroup's purpose is building incredible places where people can live their dreams.
Analysis Results
Intrinsic Value $297.91
Latest Price $37.50
Relative Value 87% 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 12.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 12.8%, 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 2.29 2.15
2023 2.58 2.28
2024 2.91 2.41
2025 3.28 2.55
2026 3.7 2.7
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 83.2 billion. This corresponds to a present value of 56.9 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 12.1 billion. Adding in the terminal value gives a total present value of 69.0 billion.

There are presently 231.0 million outstanding shares, so the intrinsic value per share is 297.91.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 24,466,386,000
Current Cash 3,558,176,000
Current Liabilities 7,151,782,000
Current Debt 0
Non-Cash Working Capital (NCWC) 13,756,428,000
Change in NCWC 7,759,429,000
EBIT 5,148,842,000
Tax Provision 1,127,050,000
Depreciation and Amortization 139,906,000
Capital Expenditure -145,562,000
Unlevered Free Cash Flow 11,746,567,041
Current Assets 11,267,498,000
Current Cash 2,582,205,000
Current Liabilities 2,688,294,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,996,999,000
Change in NCWC -217,092,000
EBIT 1,748,905,000
Tax Provision 321,855,000
Depreciation and Amortization 66,081,000
Capital Expenditure -58,354,000
Unlevered Free Cash Flow 1,213,922,037
Current Assets 9,781,146,000
Current Cash 1,217,913,000
Current Liabilities 2,349,142,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,214,091,000
Change in NCWC 347,593,000
EBIT 1,339,599,000
Tax Provision 322,876,000
Depreciation and Amortization 53,999,000
Capital Expenditure -58,119,000
Unlevered Free Cash Flow 1,360,190,456
Current Assets 9,303,714,000
Current Cash 1,110,088,000
Current Liabilities 2,327,128,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,866,498,000
Change in NCWC 244,064,000
EBIT 1,350,279,000
Tax Provision 325,517,000
Depreciation and Amortization 49,429,000
Capital Expenditure -59,039,000
Unlevered Free Cash Flow 1,258,554,356
Current Assets 8,420,773,000
Current Cash 272,683,000
Current Liabilities 2,525,656,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,622,434,000
Change in NCWC 158,633,000
EBIT 950,994,000
Tax Provision 491,607,000
Depreciation and Amortization 50,998,000
Capital Expenditure -32,051,000
Unlevered Free Cash Flow 630,596,407
Current Assets 8,552,222,000
Current Cash 698,882,000
Current Liabilities 2,389,539,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,463,801,000
Change in NCWC 1,282,930,000
EBIT 977,201,000
Tax Provision 331,147,000
Depreciation and Amortization 54,007,000
Capital Expenditure -39,295,000
Unlevered Free Cash Flow 1,928,323,559
Current Assets 7,022,762,000
Current Cash 754,161,000
Current Liabilities 2,087,730,000
Current Debt 0
Non-Cash Working Capital (NCWC) 4,180,871,000
Change in NCWC 1,111,301,000
EBIT 827,841,000
Tax Provision 321,933,000
Depreciation and Amortization 46,222,000
Capital Expenditure -45,440,000
Unlevered Free Cash Flow 1,613,328,626
Current Assets 6,286,072,000
Current Cash 1,292,862,000
Current Liabilities 1,923,640,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,069,570,000
Change in NCWC 580,269,000
EBIT 711,687,000
Tax Provision 215,420,000
Depreciation and Amortization 39,864,000
Capital Expenditure -48,790,000
Unlevered Free Cash Flow 1,060,761,300
Current Assets 6,096,653,000
Current Cash 1,580,329,000
Current Liabilities 2,027,023,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,489,301,000
Change in NCWC -239,725,000
EBIT 591,792,000
Tax Provision -2,092,294,000
Depreciation and Amortization 31,587,000
Capital Expenditure -28,899,000
Unlevered Free Cash Flow 354,755,000
Current Assets 6,168,966,000
Current Cash 1,404,760,000
Current Liabilities 2,035,180,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,729,026,000
Change in NCWC -620,500,000
EBIT 232,658,000
Tax Provision -22,591,000
Depreciation and Amortization 30,027,000
Capital Expenditure -13,942,000
Unlevered Free Cash Flow -371,757,000

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