DCF Tool

WH

Wyndham Hotels & Resorts Inc – Hotels (except Casino Hotels) and Motels
Wyndham Hotels & Resorts is the world's largest hotel franchising company by the number of properties, with approximately 9,000 hotels across approximately 90 countries on six continents. Through its network of 804,000 rooms appealing to the everyday traveler, Wyndham commands a leading presence in the economy and midscale segments of the lodging industry. The Company operates a portfolio of 20 hotel brands, including Super 8®, Days Inn®, Ramada®, Microtel®, La Quinta®, Baymont®, Wingate®, AmericInn®, Hawthorn Suites®, Trademark Collection® and Wyndham®. Wyndham Hotels & Resorts is also a leading provider of hotel management services. The Company's award-winning Wyndham Rewards loyalty program offers 85 million enrolled members the opportunity to redeem points at thousands of hotels, vacation club resorts and vacation rentals globally.
Analysis Results
Intrinsic Value $265.13
Latest Price $60.22
Relative Value 77% 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 30.2%.

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 30.2%, 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)
2022 0.643 0.595
2023 0.837 0.717
2024 1.09 0.863
2025 1.42 1.04
2026 1.85 1.25
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 31.0 billion. This corresponds to a present value of 19.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.47 billion. Adding in the terminal value gives a total present value of 23.9 billion.

There are presently 90.3 million outstanding shares, so the intrinsic value per share is 265.13.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 720,000,000
Current Cash 171,000,000
Current Liabilities 397,000,000
Current Debt 21,000,000
Non-Cash Working Capital (NCWC) 173,000,000
Change in NCWC 91,000,000
EBIT 455,000,000
Tax Provision 91,000,000
Depreciation and Amortization 95,000,000
Capital Expenditure -37,000,000
Unlevered Free Cash Flow 480,402,985
Current Assets 900,000,000
Current Cash 493,000,000
Current Liabilities 346,000,000
Current Debt 21,000,000
Non-Cash Working Capital (NCWC) 82,000,000
Change in NCWC 118,000,000
EBIT 208,000,000
Tax Provision -26,000,000
Depreciation and Amortization 98,000,000
Capital Expenditure -33,000,000
Unlevered Free Cash Flow 391,000,000
Current Assets 499,000,000
Current Cash 94,000,000
Current Liabilities 462,000,000
Current Debt 21,000,000
Non-Cash Working Capital (NCWC) -36,000,000
Change in NCWC 151,000,000
EBIT 464,000,000
Tax Provision 50,000,000
Depreciation and Amortization 109,000,000
Capital Expenditure -50,000,000
Unlevered Free Cash Flow 561,922,705
Current Assets 851,000,000
Current Cash 366,000,000
Current Liabilities 693,000,000
Current Debt 21,000,000
Non-Cash Working Capital (NCWC) -187,000,000
Change in NCWC -156,000,000
EBIT 396,000,000
Tax Provision 61,000,000
Depreciation and Amortization 99,000,000
Capital Expenditure -73,000,000
Unlevered Free Cash Flow 157,677,130

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