TOL
Toll Brothers, Inc. (TOL)
Last Price$108.4(2.9%)
Market Cap$11.1B
DCF value
$173.6
Undervalued (DCF value)
60.1%
Discount Rate
11.1%
Long-Term Growth Rate
2.5%
Stock quality
7/10
Good

TOL DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Oct'20 ActualOct'21 ActualOct'22 ActualOct'23 ActualOct'24 ActualOct'25 EstimateOct'26 EstimateOct'27 EstimateOct'28 EstimateOct'29 EstimateOct'30 EstimateOct'31 EstimateOct'32 EstimateOct'33 EstimateOct'34 EstimateOct'35 Terminal
% growth
7,077.7
(2.0%)
8,790.4
24.2%
10,275.6
16.9%
9,994.9
(2.7%)
10,846.7
8.5%
11,007.7
1.5%
11,821.1
7.4%
12,626.2
6.8%
15,520.0
22.9%
18,624.3
20.0%
21,806.3
17.1%
24,895.8
14.2%
27,696.9
11.3%
30,005.1
8.3%
31,630.5
5.4%
32,421.3
2.5%
550.3
7.8%
1,020.9
11.6%
1,508.6
14.7%
1,724.8
17.3%
2,040.2
18.8%
1,561.9
14.2%
1,677.3
14.2%
1,791.6
14.2%
2,202.2
14.2%
2,642.6
14.2%
3,094.1
14.2%
3,532.5
14.2%
3,930.0
14.2%
4,257.5
14.2%
4,488.1
14.2%
4,600.3
14.2%
NOPAT
% effective tax rate
418.7
5.9%
773.4
8.8%
1,139.2
11.1%
1,284.5
12.9%
1,537.0
14.2%
1,176.6
10.7%
1,263.6
10.7%
1,349.7
10.7%
1,659.0
10.7%
1,990.8
10.7%
2,330.9
10.7%
2,661.2
10.7%
2,960.6
10.7%
3,207.3
10.7%
3,381.1
10.7%
3,465.6
10.7%
% of revenue
68.9
1.0%
76.3
0.9%
76.8
0.7%
76.5
0.8%
0.0
0.0%
55.5
0.5%
59.6
0.5%
63.7
0.5%
78.3
0.5%
93.9
0.5%
110.0
0.5%
125.5
0.5%
139.7
0.5%
151.3
0.5%
159.5
0.5%
163.5
0.5%
% of revenue
(109.6)
(1.5%)
(66.9)
(0.8%)
(71.7)
(0.7%)
(73.0)
(0.7%)
(73.6)
(0.7%)
(77.3)
(0.7%)
(83.0)
(0.7%)
(88.7)
(0.7%)
(109.0)
(0.7%)
(130.8)
(0.7%)
(153.1)
(0.7%)
(174.8)
(0.7%)
(194.5)
(0.7%)
(210.7)
(0.7%)
(222.1)
(0.7%)
(227.7)
(0.7%)
314.6
4.4%
345.2
3.9%
(404.1)
(3.9%)
(432.7)
(4.3%)
0.0
0.0%
(303.1)
(2.8%)
(325.5)
(2.8%)
(347.7)
(2.8%)
(427.4)
(2.8%)
(512.9)
(2.8%)
(600.5)
(2.8%)
(685.6)
(2.8%)
(762.7)
(2.8%)
(826.3)
(2.8%)
(871.1)
(2.8%)
(892.9)
(2.8%)
Free Cash Flow to Firm (FCFF)
% of revenue
692.7
9.8%
1,128.0
12.8%
740.1
7.2%
855.3
8.6%
1,463.3
13.5%
851.7
7.7%
914.6
7.7%
976.9
7.7%
1,200.8
7.7%
1,441.0
7.7%
1,687.2
7.7%
1,926.3
7.7%
2,143.0
7.7%
2,321.6
7.7%
2,447.3
7.7%
2,508.5
7.7%
% of FCFF used in calculation
66.3%
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
0.95
0.85
0.77
0.69
0.62
0.56
0.51
0.46
0.41
0.37
Discounted FCFF (DFCFF)
535.8
781.5
751.6
831.8
898.8
947.6
974.1
975.7
951.8
903.4

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TOL DCF Value

DCF Value Calculation

as of Mar 03, 2025
Sum of DFCFF
% share of EV
8,552.1M
44.2%
Terminal Value (TV)
29.3B
Discounted TV
% share of EV
10.8B
55.8%
Total Debt
2,832.9M
Shares outstanding
102.8M
FX rate
1.0
60.1% undervalued

Equity Value Bridge

TOL DCF Financials

Revenue
$10.8B -> $31.6B 11.3% CAGR
Operating Income
$2,040.2M -> $4,488.1M 8.2% CAGR
FCFF
$1,463.3M -> $2,447.3M 5.3% CAGR

TOL DCF sensitivity

DCF value
Long-term Terminal growth rate
1.5%
2.0%
2.5%
3.0%
3.5%
WACC
10.0%
$189.0
$196.0
$204.0
$214.0
$225.0
10.5%
$176.0
$182.0
$189.0
$197.0
$206.0
11.1%
$163.0
$168.0
$174.0
$180.0
$187.0
11.5%
$153.0
$158.0
$163.0
$169.0
$175.0
12.0%
$144.0
$148.0
$152.0
$157.0
$163.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.5%
2.0%
2.5%
3.0%
3.5%
WACC
10.0%
74.0%
81.0%
88.0%
97.0%
108.0%
10.5%
62.0%
68.0%
74.0%
82.0%
90.0%
11.1%
50.0%
55.0%
61.0%
66.0%
73.0%
11.5%
41.0%
46.0%
50.0%
56.0%
61.0%
12.0%
33.0%
37.0%
40.0%
45.0%
50.0%

Explore more intrinsic value tools hub for TOL

FAQ

What is Toll Brothers, Inc. DCF (discounted cash flow) valuation?

As of Mar 03, 2025, Toll Brothers, Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $173.6. This suggests it may be undervalued by 60.1% compared to its current price of around $108.4, using a WACC of 11.1% and growth rates of 2.5%.

What is Toll Brothers, Inc. WACC?

As of Mar 03, 2025, Toll Brothers, Inc.'s Weighted Average Cost of Capital (WACC) is approximately 11.1%.

What is Toll Brothers, Inc. Enterprise Value?

As of Mar 03, 2025, Toll Brothers, Inc.'s Enterprise Value (EV) is approximately $19.4B. 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.