$9.21
+1.3%RE/MAX Holdings, Inc. operates as a franchisor of real estate and mortgage brokerage services in the United States, Canada, and internationally. The company operates through three segments: Real Estate, Mortgage, and Marketing Funds. It offers real estate brokerage franchising services under the RE/MAX brand; mortgage brokerage services to real estate brokers, real estate professionals, mortgage professionals, and other investors under the Motto Mortgage brand; and mortgage loan processing software and services under the wemlo brand. In addition, the company provides First mobile app, which integrates a suite of digital products that enables agents, brokers, and teams to establish and manage client relationships; RE/MAX University platform, a learning hub designed to help each agent in their professional expertise; and Booj platform. The company was founded in 1973 and is headquartered in Denver, Colorado.
Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation
Base year metrics used for projections
Forecast period and terminal assumptions
Calculation flow from present value to intrinsic value per share
Operating Cash Flow - Maintenance CapEx = Owner Earnings
| Metric | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $25.8M | $16.3M | $10.3M | $6.5M | $4.1M | $2.6M | $1.6M | $1.0M | $655.6K | $414.2K |
| Maintenance CapEx | -$931.8K | -$588.7K | -$371.9K | -$235.0K | -$148.5K | -$93.8K | -$59.3K | -$37.4K | -$23.7K | -$14.9K |
| Owner Earnings | $24.9M | $15.7M | $9.9M | $6.3M | $4.0M | $2.5M | $1.6M | $1.0M | $632.0K | $399.3K |
| Discount Factor | 0.926 | 0.857 | 0.794 | 0.735 | 0.681 | 0.630 | 0.583 | 0.540 | 0.500 | 0.463 |
| Present Value | $23.1M | $13.5M | $7.9M | $4.6M | $2.7M | $1.6M | $923.8K | $540.4K | $316.1K | $184.9K |
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