Today I’ll make a stock analysis based on the Discounted Cash Flow Model.

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 3.5%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.6%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 4%

HISTORICAL DATA

Revenue growth in the last 10 years (CAGR): 8.71%

Earnings growth in the last 10 years (CAGR): 16.22%

Unlevered Free Cash Flow growth in the last 10 years (negative): from 1878 to 385.8 for the TTM

FUTURE ASSUMPTIONS

End of Year FCF growth: 150%

Growth until end of 2026: 40%

Growth until end of 2034: 6%

Perpetual growth: 3%

Net Debt: 44.234B

Restricted Stock Units Present Value Assumption: 0.654B

Stock Valuation based on these assumptions: $104

Last update 09/23/2024

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Aercap (AER) and I don’t plan to add a position in the coming days.