Stock Analysis on Net

Las Vegas Sands Corp. (NYSE:LVS)

This company has been moved to the archive! The financial data has not been updated since October 20, 2023.

Present Value of Free Cash Flow to Equity (FCFE) 

Microsoft Excel

In discounted cash flow (DCF) valuation techniques the value of the stock is estimated based upon present value of some measure of cash flow. Free cash flow to equity (FCFE) is generally described as cash flows available to the equity holder after payments to debt holders and after allowing for expenditures to maintain the company asset base.


Intrinsic Stock Value (Valuation Summary)

Las Vegas Sands Corp., free cash flow to equity (FCFE) forecast

US$ in millions, except per share data

Microsoft Excel
Year Value FCFEt or Terminal value (TVt) Calculation Present value at 14.77%
01 FCFE0 -463
1 FCFE1 = -463 × (1 + 0.00%)
2 FCFE2 = × (1 + 0.00%)
3 FCFE3 = × (1 + 0.00%)
4 FCFE4 = × (1 + 0.00%)
5 FCFE5 = × (1 + 0.00%)
5 Terminal value (TV5) = × (1 + 0.00%) ÷ (14.77%0.00%)
Intrinsic value of Las Vegas Sands Corp. common stock
 
Intrinsic value of Las Vegas Sands Corp. common stock (per share) $—
Current share price $45.32

Based on: 10-K (reporting date: 2022-12-31).

Disclaimer!
Valuation is based on standard assumptions. There may exist specific factors relevant to stock value and omitted here. In such a case, the real stock value may differ significantly form the estimated. If you want to use the estimated intrinsic stock value in investment decision making process, do so at your own risk.


Required Rate of Return (r)

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Assumptions
Rate of return on LT Treasury Composite1 RF 4.67%
Expected rate of return on market portfolio2 E(RM) 13.79%
Systematic risk of Las Vegas Sands Corp. common stock βLVS 1.11
 
Required rate of return on Las Vegas Sands Corp. common stock3 rLVS 14.77%

1 Unweighted average of bid yields on all outstanding fixed-coupon U.S. Treasury bonds neither due or callable in less than 10 years (risk-free rate of return proxy).

2 See details »

3 rLVS = RF + βLVS [E(RM) – RF]
= 4.67% + 1.11 [13.79%4.67%]
= 14.77%


FCFE Growth Rate (g)

FCFE growth rate (g) implied by PRAT model

Las Vegas Sands Corp., PRAT model

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Average Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Dividends declared 603 2,367 2,352
Net income (loss) attributable to Las Vegas Sands Corp. 1,832 (961) (1,685) 2,698 2,413
Net revenues 4,110 4,234 3,612 13,739 13,729
Total assets 22,039 20,059 20,807 23,199 22,547
Total Las Vegas Sands Corp. stockholders’ equity 3,881 1,996 2,973 5,187 5,684
Financial Ratios
Retention rate1 1.00 0.12 0.03
Profit margin2 44.57% -22.70% -46.65% 19.64% 17.58%
Asset turnover3 0.19 0.21 0.17 0.59 0.61
Financial leverage4 5.68 10.05 7.00 4.47 3.97
Averages
Retention rate 0.38
Profit margin 2.49%
Asset turnover 0.35
Financial leverage 6.23
 
FCFE growth rate (g)5 0.00%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Retention rate = (Net income (loss) attributable to Las Vegas Sands Corp. – Dividends declared) ÷ Net income (loss) attributable to Las Vegas Sands Corp.
= (1,8320) ÷ 1,832
= 1.00

2 Profit margin = 100 × Net income (loss) attributable to Las Vegas Sands Corp. ÷ Net revenues
= 100 × 1,832 ÷ 4,110
= 44.57%

3 Asset turnover = Net revenues ÷ Total assets
= 4,110 ÷ 22,039
= 0.19

4 Financial leverage = Total assets ÷ Total Las Vegas Sands Corp. stockholders’ equity
= 22,039 ÷ 3,881
= 5.68

5 g = Retention rate × Profit margin × Asset turnover × Financial leverage
= 0.38 × 2.49% × 0.35 × 6.23
= 0.00%


FCFE growth rate (g) forecast

Las Vegas Sands Corp., H-model

Microsoft Excel
Year Value gt
1 g1 0.00%
2 g2 0.00%
3 g3 0.00%
4 g4 0.00%
5 and thereafter g5 0.00%

where:
g1 is implied by PRAT model
g5 is implied by single-stage model
g2, g3 and g4 are calculated using linear interpoltion between g1 and g5

Calculations

g2 = g1 + (g5g1) × (2 – 1) ÷ (5 – 1)
= 0.00% + (0.00%0.00%) × (2 – 1) ÷ (5 – 1)
= 0.00%

g3 = g1 + (g5g1) × (3 – 1) ÷ (5 – 1)
= 0.00% + (0.00%0.00%) × (3 – 1) ÷ (5 – 1)
= 0.00%

g4 = g1 + (g5g1) × (4 – 1) ÷ (5 – 1)
= 0.00% + (0.00%0.00%) × (4 – 1) ÷ (5 – 1)
= 0.00%