TMHC
Taylor Morrison Home Corporation (TMHC)
Last Price$60.5(1.9%)
Market Cap$6,384.6M
DCF value
$80.7
Undervalued (DCF value)
33.5%
Discount Rate
8.2%
Long-Term Growth Rate
2.5%
Stock quality
6/10
Good

TMHC DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 ActualDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 EstimateDec'35 Terminal
% growth
6,129.3
28.7%
7,501.3
22.4%
8,224.9
9.6%
7,417.8
(9.8%)
8,168.1
10.1%
8,333.5
2.0%
8,908.2
6.9%
9,478.9
6.4%
10,040.0
5.9%
10,585.2
5.4%
11,108.3
4.9%
11,603.0
4.5%
12,063.1
4.0%
12,482.5
3.5%
12,855.5
3.0%
13,176.9
2.5%
571.9
9.3%
826.9
11.0%
1,362.6
16.6%
1,084.4
14.6%
1,213.7
14.9%
972.6
11.7%
1,039.7
11.7%
1,106.3
11.7%
1,171.8
11.7%
1,235.4
11.7%
1,296.5
11.7%
1,354.2
11.7%
1,407.9
11.7%
1,456.9
11.7%
1,500.4
11.7%
1,537.9
11.7%
NOPAT
% effective tax rate
440.3
7.2%
653.8
8.7%
1,033.5
12.6%
820.1
11.1%
930.7
11.4%
745.9
9.0%
797.3
9.0%
848.4
9.0%
898.6
9.0%
947.4
9.0%
994.2
9.0%
1,038.5
9.0%
1,079.7
9.0%
1,117.2
9.0%
1,150.6
9.0%
1,179.4
9.0%
% of revenue
37.3
0.6%
40.0
0.5%
33.8
0.4%
33.4
0.5%
41.2
0.5%
37.9
0.5%
40.6
0.5%
43.2
0.5%
45.7
0.5%
48.2
0.5%
50.6
0.5%
52.8
0.5%
54.9
0.5%
56.8
0.5%
58.5
0.5%
60.0
0.5%
% of revenue
(37.8)
(0.6%)
(21.2)
(0.3%)
(30.6)
(0.4%)
(33.4)
(0.5%)
(36.3)
(0.4%)
(35.2)
(0.4%)
(37.6)
(0.4%)
(40.0)
(0.4%)
(42.4)
(0.4%)
(44.7)
(0.4%)
(46.9)
(0.4%)
(49.0)
(0.4%)
(51.0)
(0.4%)
(52.7)
(0.4%)
(54.3)
(0.4%)
(55.7)
(0.4%)
714.2
11.7%
(495.6)
(6.6%)
(180.5)
(2.2%)
(48.8)
(0.7%)
(848.1)
(10.4%)
(367.6)
(4.4%)
(393.0)
(4.4%)
(418.2)
(4.4%)
(442.9)
(4.4%)
(467.0)
(4.4%)
(490.0)
(4.4%)
(511.9)
(4.4%)
(532.2)
(4.4%)
(550.7)
(4.4%)
(567.1)
(4.4%)
(581.3)
(4.4%)
Free Cash Flow to Firm (FCFF)
% of revenue
1,154.1
18.8%
176.9
2.4%
856.3
10.4%
771.3
10.4%
87.5
1.1%
381.0
4.6%
407.3
4.6%
433.3
4.6%
459.0
4.6%
483.9
4.6%
507.8
4.6%
530.5
4.6%
551.5
4.6%
570.7
4.6%
587.7
4.6%
602.4
4.6%
% of FCFF used in calculation
83.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.96
0.89
0.82
0.76
0.70
0.65
0.60
0.55
0.51
0.47
Discounted FCFF (DFCFF)
304.0
361.7
355.6
348.1
339.1
328.8
317.3
304.8
291.4
277.3

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TMHC DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
3,228.2M
39.4%
Terminal Value (TV)
10.5B
Discounted TV
% share of EV
4,964.5M
60.6%
Total Debt
158.0M
8,521.8M
Shares outstanding
105.5M
FX rate
1.0
33.5% undervalued

Equity Value Bridge

TMHC DCF Financials

Revenue
$8,168.1M -> $12.9B 4.6% CAGR
Operating Income
$1,213.7M -> $1,500.4M 2.1% CAGR
FCFF
$87.5M -> $587.7M 21.0% CAGR

TMHC DCF sensitivity

DCF value
Long-term Terminal growth rate
1.5%
2.0%
2.5%
3.0%
3.5%
WACC
7.0%
$90.0
$95.0
$102.0
$110.0
$111.0
7.5%
$83.0
$87.0
$92.0
$99.0
$106.0
8.2%
$74.0
$77.0
$81.0
$85.0
$91.0
8.5%
$71.0
$74.0
$77.0
$81.0
$86.0
9.0%
$66.0
$69.0
$71.0
$75.0
$78.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.5%
2.0%
2.5%
3.0%
3.5%
WACC
7.0%
49.0%
57.0%
69.0%
82.0%
84.0%
7.5%
37.0%
44.0%
52.0%
64.0%
75.0%
8.2%
22.0%
27.0%
34.0%
41.0%
50.0%
8.5%
17.0%
22.0%
27.0%
34.0%
42.0%
9.0%
9.0%
14.0%
17.0%
24.0%
29.0%

Explore more intrinsic value tools hub for TMHC

FAQ

What is Taylor Morrison Home Corporation DCF (discounted cash flow) valuation?

As of Mar 03, 2025, Taylor Morrison Home Corporation's Discounted Cash Flow (DCF) valuation estimates its share price at $80.7. This suggests it may be undervalued by 33.5% compared to its current price of around $60.5, using a WACC of 8.2% and growth rates of 2.5%.

What is Taylor Morrison Home Corporation WACC?

As of Mar 03, 2025, Taylor Morrison Home Corporation's Weighted Average Cost of Capital (WACC) is approximately 8.2%.

What is Taylor Morrison Home Corporation Enterprise Value?

As of Mar 03, 2025, Taylor Morrison Home Corporation's Enterprise Value (EV) is approximately $8,192.7M. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.