Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 4.83%, lower than industry average of 8.57%.

Growth Trajectory

Profitability

In the growth phase company makes 58.62% profit on every dollar of sales, higher than industry average of 31.12%.

Profitability Trajectory

Risk Profile

Investors expect at least 5.35% 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
92.57B USD
Equity Value
79.06B USD
FCF Yield
40.11%
Average ROIC
11.11%
Cost of Capital
6.61%
P/E Ratio
75.84x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues9.14B USD7.85B USD
Operating Income or EBIT1.50B USD1.19B USD
Interest Expense579.64M USD574.26M USD
Book Value Of Equity35.90B USD31.96B USD
Book Value Of Debt17.31B USD16.76B USD
Cash and Marketable Securities4.41B USD3.51B USD
Number of Shares Outstanding665.12M--
Minority interests616.38M USD0 USD
Current Stock Price168.85 USD--
Effective Tax Rate1.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
+7.75%
16.31%Company
vs
8.56%Industry
Above Industry
Operating Margin
-14.75%
16.37%Company
vs
31.11%Industry
Below Industry
Welltower Inc. shows above-average growth compared to industry peers, suggesting strong market position and growth opportunities.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 71% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 65.64B USD Add
Present Value (Cash Flow Over Next 10 Years) 26.93B USD Add
Value of Operating Assets 92.57B USD Sub-total
Debt 17.30B USD Subtract
Minority Interests 616.37M USD Subtract
Cash 4.40B USD Add
Value of Equity 79.06B USD Sub-total
Number of Shares 665.12M shares Divisor
Estimated Value per Share (Fair Value) 118.87 USD Total
Current Market Price 168.85 USD Reference

Financial Projections

Total FCF Present Value
26.93B USD
Avg Revenue Growth
5.10%
Avg Operating Margin
68.01%
Avg ROIC
11.11%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue10.40B USD10.90B USD11.43B USD11.98B USD12.56B USD13.16B USD13.79B USD14.43B USD15.11B USD15.80B USD16.53B USD
Growth Rate 13.91% 4.83% 4.83% 4.83% 4.83% 4.78% 4.73% 4.69% 4.64% 4.59% 4.59%
PROFITABILITY
Operating Income1.70B USD4.85B USD6.70B USD8.71B USD10.90B USD11.42B USD11.97B USD12.53B USD13.11B USD13.71B USD14.34B USD
Operating Margin 16.37% 44.54% 58.62% 72.70% 86.79% 86.79% 86.79% 86.79% 86.79% 86.79% 86.79%
EBIT (1-tax)1.68B USD4.81B USD6.63B USD8.62B USD10.79B USD10.76B USD10.70B USD10.60B USD10.46B USD10.28B USD10.76B USD
CASH FLOW
Reinvestment3.95B USD4.15B USD4.35B USD4.56B USD4.73B USD4.40B USD4.56B USD4.73B USD4.90B USD5.12B USD5.60B USD
Free Cash Flow-2.28B USD659.72M USD2.28B USD4.06B USD6.06B USD6.36B USD6.13B USD5.86B USD5.56B USD5.15B USD5.15B USD
Terminal Value--------------------121.88B USD
Present Value-2.16B USD594.47M USD1.95B USD3.30B USD4.67B USD4.62B USD4.17B USD3.72B USD3.26B USD2.77B USD—
EFFICIENCY
ROIC 3.45% 9.11% 11.66% 14.08% 16.40% 15.25% 14.27% 13.33% 12.42% 11.53% 8.83%
Cost of Capital 5.34% 5.34% 5.34% 5.34% 5.34% 6.04% 6.73% 7.43% 8.13% 8.83% 8.83%
Sales/Capital 0.12x 0.12x 0.12x 0.12x 0.12x 0.14x 0.14x 0.14x 0.14x 0.14x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

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