Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 5.04%, lower than industry average of 8.28%.

Growth Trajectory

Profitability

In the growth phase company makes 56.04% profit on every dollar of sales, higher than industry average of 50.01%.

Profitability Trajectory

Risk Profile

Investors expect at least 7.42% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
30.12B USD
Equity Value
4.78B USD
FCF Yield
22.76%
Average ROIC
10.52%
Cost of Capital
7.93%
P/E Ratio
17.14x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues6.03B USD5.96B USD
Operating Income or EBIT3.43B USD4.03B USD
Interest Expense913.56M USD905.80M USD
Book Value Of Equity2.41B USD2.90B USD
Book Value Of Debt25.92B USD24.78B USD
Cash and Marketable Securities1.23B USD1.40B USD
Number of Shares Outstanding326.49M--
Minority interests657.53M USD0 USD
Current Stock Price178.43 USD--
Effective Tax Rate1.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-7.10%
1.18%Company
vs
8.28%Industry
Below Industry
Operating Margin
+6.87%
56.88%Company
vs
50.01%Industry
Above Industry
Simon Property Group, Inc. demonstrates superior operational efficiency with margins above industry average, indicating effective cost management.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 74% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 22.30B USD Add
Present Value (Cash Flow Over Next 10 Years) 7.81B USD Add
Value of Operating Assets 30.12B USD Sub-total
Debt 25.91B USD Subtract
Minority Interests 657.52M USD Subtract
Cash 1.23B USD Add
Value of Equity 4.78B USD Sub-total
Number of Shares 326.49M shares Divisor
Estimated Value per Share (Fair Value) 14.64 USD Total
Current Market Price 178.42 USD Reference

Financial Projections

Total FCF Present Value
7.81B USD
Avg Revenue Growth
4.36%
Avg Operating Margin
55.84%
Avg ROIC
10.52%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue6.26B USD6.57B USD6.91B USD7.25B USD7.62B USD8.00B USD8.39B USD8.79B USD9.20B USD9.62B USD10.07B USD
Growth Rate 3.78% 5.04% 5.04% 5.04% 5.04% 4.95% 4.86% 4.77% 4.68% 4.59% 4.59%
PROFITABILITY
Operating Income3.56B USD3.70B USD3.87B USD4.04B USD4.22B USD4.43B USD4.65B USD4.87B USD5.10B USD5.34B USD5.58B USD
Operating Margin 56.88% 56.31% 56.03% 55.75% 55.47% 55.47% 55.47% 55.47% 55.47% 55.47% 55.47%
EBIT (1-tax)3.52B USD3.66B USD3.83B USD4.00B USD4.18B USD4.18B USD4.16B USD4.12B USD4.07B USD4.00B USD4.18B USD
CASH FLOW
Reinvestment2.40B USD2.53B USD2.65B USD2.79B USD2.88B USD2.86B USD2.95B USD3.03B USD3.11B USD3.26B USD2.18B USD
Free Cash Flow1.11B USD1.13B USD1.17B USD1.21B USD1.30B USD1.31B USD1.20B USD1.08B USD955.06M USD742.63M USD2.00B USD
Terminal Value--------------------47.45B USD
Present Value1.04B USD985.35M USD947.94M USD911.70M USD912.64M USD852.27M USD726.26M USD604.73M USD488.59M USD349.09M USD—
EFFICIENCY
ROIC 13.01% 12.43% 11.96% 11.54% 11.16% 10.35% 9.62% 8.93% 8.27% 7.65% 8.83%
Cost of Capital 7.41% 7.41% 7.41% 7.41% 7.41% 7.70% 7.98% 8.26% 8.54% 8.83% 8.83%
Sales/Capital 0.13x 0.13x 0.13x 0.13x 0.13x 0.13x 0.13x 0.13x 0.13x 0.13x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)