Discounted Cash Flow (DCF) Analysis Levered

American Eagle Outfitters, Inc. (AEO)

$14.98

+0.20 (+1.35%)

All numbers are in Millions, Currency in USD

Stock DCF: 8.91 | 14.98 | overvalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	4,035.72	4,308.21	3,759.11	5,010.79	4,989.83	5,325.22	5,683.15	6,065.13	6,472.79	6,907.85
Revenue (%)
Operating Cash Flow	456.64	415.42	202.50	303.67	406.30	431.85	460.87	491.85	524.91	560.19
Operating Cash Flow (%)
Capital Expenditure	-189.69	-210.36	-127.98	-233.85	-260.38	-243.60	-259.98	-277.45	-296.10	-316
Capital Expenditure (%)
Free Cash Flow	266.95	205.06	74.52	69.82	145.92	188.24	200.89	214.40	228.81	244.19

Weighted Average Cost Of Capital

Share price	$ 14.98
Beta	1.513
Diluted Shares Outstanding	205.23
Cost of Debt
Tax Rate	29.89
After-tax Cost of Debt	4.05%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.578
Total Debt	1,367.37
Total Equity	3,074.29
Total Capital	4,441.65
Debt Weighting	30.79
Equity Weighting	69.21
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	4,035.72	4,308.21	3,759.11	5,010.79	4,989.83	5,325.22	5,683.15	6,065.13	6,472.79	6,907.85
Operating Cash Flow	456.64	415.42	202.50	303.67	406.30	431.85	460.87	491.85	524.91	560.19
Capital Expenditure	-189.69	-210.36	-127.98	-233.85	-260.38	-243.60	-259.98	-277.45	-296.10	-316
Free Cash Flow	266.95	205.06	74.52	69.82	145.92	188.24	200.89	214.40	228.81	244.19
WACC
PV LFCF						172.29	168.29	164.38	160.56	156.83
SUM PV LFCF										822.33

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.26
Free cash flow (t + 1)	249.07
Terminal Value	3,430.73
Present Value of Terminal Value	2,203.34

Intrinsic Value

Enterprise Value	3,025.67
Net Debt	1,197.16
Equity Value	1,828.51
Shares Outstanding	205.23
Equity Value Per Share	8.91