Discounted Cash Flow (DCF) Analysis Levered

American Eagle Outfitters, Inc. (AEO)

$12.92

+1.03 (+8.66%)
All numbers are in Millions, Currency in USD
Stock DCF: 36.41 | 12.92 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 3,795.554,035.724,308.213,759.115,010.795,432.085,888.806,383.926,920.677,502.55
Revenue (%)
Operating Cash Flow 394.43456.64415.42202.50303.67464.95504.04546.42592.36642.17
Operating Cash Flow (%)
Capital Expenditure -172.15-189.69-210.36-127.98-233.85-241.08-261.34-283.32-307.14-332.96
Capital Expenditure (%)
Free Cash Flow 222.28266.95205.0674.5269.82223.87242.70263.10285.22309.20

Weighted Average Cost Of Capital

Share price $ 12.92
Beta 1.330
Diluted Shares Outstanding 166.46
Cost of Debt
Tax Rate 24.92
After-tax Cost of Debt 1.44%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.404
Total Debt 1,806.49
Total Equity 2,150.60
Total Capital 3,957.09
Debt Weighting 45.65
Equity Weighting 54.35
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 3,795.554,035.724,308.213,759.115,010.795,432.085,888.806,383.926,920.677,502.55
Operating Cash Flow 394.43456.64415.42202.50303.67464.95504.04546.42592.36642.17
Capital Expenditure -172.15-189.69-210.36-127.98-233.85-241.08-261.34-283.32-307.14-332.96
Free Cash Flow 222.28266.95205.0674.5269.82223.87242.70263.10285.22309.20
WACC
PV LFCF 211.66216.94222.35227.89233.58
SUM PV LFCF 1,112.42

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.77
Free cash flow (t + 1) 315.39
Terminal Value 8,365.72
Present Value of Terminal Value 6,319.61

Intrinsic Value

Enterprise Value 7,432.03
Net Debt 1,371.72
Equity Value 6,060.32
Shares Outstanding 166.46
Equity Value Per Share 36.41