The Discounted Cash Flow (DCF) valuation of MDC Holdings Inc (MDC) is 132.93 USD. With the latest stock price at 62.98 USD, the upside of MDC Holdings Inc based on DCF is 111.1%.
Based on the latest price of 62.98 USD and our DCF valuation, MDC Holdings Inc (MDC) is a buy. Buying MDC stocks now will result in a potential gain of 111.1%.
Range | Selected | |
WACC / Discount Rate | 5.8% - 7.4% | 6.6% |
Long-term Growth Rate | 1.0% - 3.0% | 2.0% |
Fair Price | 98.11 - 212.87 | 132.93 |
Upside | 55.8% - 238.0% | 111.1% |
(USD in millions) | Projections | |||||
12-2023 | 12-2024 | 12-2025 | 12-2026 | 12-2027 | 12-2028 | |
Revenue | 4,643 | 4,835 | 5,154 | 5,282 | 5,625 | 6,122 |
% Growth | 19% | 4% | 7% | 2% | 6% | 9% |
Cost of goods sold | (3,747) | (3,825) | (3,995) | (4,012) | (4,188) | (4,467) |
% of Revenue | 81% | 79% | 78% | 76% | 74% | 73% |
Selling, G&A expenses | (430) | (448) | (477) | (489) | (521) | (567) |
% of Revenue | 9% | 9% | 9% | 9% | 9% | 9% |
Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
% of Revenue | 0% | 0% | 0% | 0% | 0% | 0% |
Net interest & other expenses | 61 | 63 | 67 | 69 | 73 | 80 |
% of Revenue | 1% | 1% | 1% | 1% | 1% | 1% |
Tax expense | (125) | (148) | (177) | (201) | (234) | (277) |
Tax rate | 24% | 24% | 24% | 24% | 24% | 24% |
Net profit | 401 | 478 | 571 | 648 | 755 | 892 |
% Margin | 9% | 10% | 11% | 12% | 13% | 15% |