MeritValue

Douglas Emmett Inc

DEIdata completeness 100%18 fiscal years on file

Data notes: no data for concept 'incomeTaxExpense'; no data for concept 'pretaxIncome'

The thesis, from the filings

Douglas Emmett Inc earns about 1% on equity, and has bought back 5% of its shares over 5 years. The applicable estimate puts fair value near $1.46 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$69M1$84.9M1$1.02B2$986.5M2$1B2
Net income$65.3M3$97.1M4−$42.7M5$23.5M5$16.3M5
Operating cash flow$447M6$496.9M7$427M8$408.7M8$386.9M8
Capital expenditure$108.5M9$162.4M10$189.2M11$167.3M11$192.4M11
Free cash flow (derived)$338.5M6$334.5M7$237.8M8$241.4M8$194.5M8
Total debt$5.01B12$5.19B13$5.54B14$5.5B15$5.55B15
Cash & equivalents$335.9M16$268.8M17$523.1M18$444.6M18$340.8M18
Diluted shares175.5M175.8M169.6M167.4M167.4M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$113.74
your share of equity
Profit it earned you last year
$0.97
Free cash flow it threw off
$11.61
Debt you’d be carrying
$331.38

10 shares is a claim on $113.74 of net worth that earned you $0.97 and generated $11.61 of cash last year, against $331.38 of debt.

iii. Is this a good business?
Moat signal · return on equity
1% avg · 5y
FY21 3%FY22 4%FY23 -2%FY24 1%FY25 1%

It earned an average 1% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−5% shares · 5y

Share count is down 5% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 11% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$237.8M
DCF · Growth Exit 5Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$237.8M
Earnings Power Value
$1.46
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$23.5M
  • growthAssumed0.0%
Graham Number
$4.8
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001364250-23-000009 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-12-31 · accession 0001364250-26-000011 (Revenues)
  3. 10-K · period ending 2021-12-31 · accession 0001364250-24-000012 (NetIncomeLoss)
  4. 10-K · period ending 2022-12-31 · accession 0001364250-25-000014 (NetIncomeLoss)
  5. 10-K · period ending 2023-12-31 · accession 0001364250-26-000011 (NetIncomeLoss)
  6. 10-K · period ending 2021-12-31 · accession 0001364250-24-000012 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2022-12-31 · accession 0001364250-25-000014 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-12-31 · accession 0001364250-26-000011 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2021-12-31 · accession 0001364250-24-000012 (PaymentsForCapitalImprovements)
  10. 10-K · period ending 2022-12-31 · accession 0001364250-25-000014 (PaymentsForCapitalImprovements)
  11. 10-K · period ending 2023-12-31 · accession 0001364250-26-000011 (PaymentsForCapitalImprovements)
  12. 10-K · period ending 2021-12-31 · accession 0001364250-23-000009 (LongTermDebt)
  13. 10-K · period ending 2022-12-31 · accession 0001364250-24-000012 (LongTermDebt)
  14. 10-K · period ending 2023-12-31 · accession 0001364250-25-000014 (LongTermDebt)
  15. 10-K · period ending 2024-12-31 · accession 0001364250-26-000011 (LongTermDebt)
  16. 10-K · period ending 2021-12-31 · accession 0001364250-24-000012 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2022-12-31 · accession 0001364250-25-000014 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-12-31 · accession 0001364250-26-000011 (CashAndCashEquivalentsAtCarryingValue)