DCF Tool

VAC

Marriott Vacations Worldwide Corp – Travel Agencies
Marriott Vacations Worldwide Corporation is a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products and services. The company has a diverse portfolio that includes seven vacation ownership brands. It also includes exchange networks and membership programs, as well as management of other resorts and lodging properties. As a leader and innovator in the vacation industry, the company upholds the highest standards of excellence in serving its customers, investors and associates while maintaining exclusive, long-term relationships with Marriott International, Inc. and Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services.
Analysis Results
Intrinsic Value $455.39
Latest Price $144.95
Relative Value 68% 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 15.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 15.8%, 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 0.607 0.568
2023 0.702 0.615
2024 0.813 0.667
2025 0.941 0.723
2026 1.09 0.783
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 23.0 billion. This corresponds to a present value of 15.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.36 billion. Adding in the terminal value gives a total present value of 18.9 billion.

There are presently 41.4 million outstanding shares, so the intrinsic value per share is 455.39.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,846,000,000
Current Cash 342,000,000
Current Liabilities 1,424,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,080,000,000
Change in NCWC 87,000,000
EBIT 569,000,000
Tax Provision 74,000,000
Depreciation and Amortization 146,000,000
Capital Expenditure -47,000,000
Unlevered Free Cash Flow 423,456,692
Current Assets 3,867,000,000
Current Cash 524,000,000
Current Liabilities 1,350,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,993,000,000
Change in NCWC -347,000,000
EBIT 128,000,000
Tax Provision -84,000,000
Depreciation and Amortization 123,000,000
Capital Expenditure -41,000,000
Unlevered Free Cash Flow -137,000,000
Current Assets 4,116,000,000
Current Cash 287,000,000
Current Liabilities 1,489,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,340,000,000
Change in NCWC 42,000,000
EBIT 670,000,000
Tax Provision 83,000,000
Depreciation and Amortization 141,000,000
Capital Expenditure -46,000,000
Unlevered Free Cash Flow 559,844,444
Current Assets 3,840,000,000
Current Cash 231,000,000
Current Liabilities 1,311,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,298,000,000
Change in NCWC 813,338,000
EBIT 391,000,000
Tax Provision 51,000,000
Depreciation and Amortization 62,000,000
Capital Expenditure -40,000,000
Unlevered Free Cash Flow 1,032,736,058
Current Assets 2,480,950,000
Current Cash 409,059,000
Current Liabilities 587,229,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,484,662,000
Change in NCWC 90,543,000
EBIT 298,534,000
Tax Provision -895,000
Depreciation and Amortization 21,494,000
Capital Expenditure -26,297,000
Unlevered Free Cash Flow 384,274,000
Current Assets 2,059,682,000
Current Cash 147,102,000
Current Liabilities 518,461,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,394,119,000
Change in NCWC 113,561,000
EBIT 285,921,000
Tax Provision 85,580,000
Depreciation and Amortization 21,044,000
Capital Expenditure -34,770,000
Unlevered Free Cash Flow 275,993,569
Current Assets 1,970,236,000
Current Cash 177,061,000
Current Liabilities 512,617,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,280,558,000
Change in NCWC -68,442,000
EBIT 278,438,000
Tax Provision 83,698,000
Depreciation and Amortization 22,217,000
Capital Expenditure -35,735,000
Unlevered Free Cash Flow 83,620,652
Current Assets 2,257,000,000
Current Cash 347,000,000
Current Liabilities 561,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,349,000,000
Change in NCWC -109,000,000
EBIT 241,000,000
Tax Provision 70,000,000
Depreciation and Amortization 19,000,000
Capital Expenditure -15,000,000
Unlevered Free Cash Flow 24,278,145
Current Assets 2,235,000,000
Current Cash 200,000,000
Current Liabilities 577,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,458,000,000
Change in NCWC -38,000,000
EBIT 223,000,000
Tax Provision 51,000,000
Depreciation and Amortization 23,000,000
Capital Expenditure -22,000,000
Unlevered Free Cash Flow 99,183,206
Current Assets 2,208,000,000
Current Cash 103,000,000
Current Liabilities 609,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,496,000,000
Change in NCWC -177,000,000
EBIT 202,000,000
Tax Provision 21,000,000
Depreciation and Amortization 30,000,000
Capital Expenditure -17,000,000
Unlevered Free Cash Flow -76,648,648

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