Discounted Cash Flow (DCF) Analysis Levered

Abercrombie & Fitch Co. (ANF)

$22.55

+0.70 (+3.20%)

All numbers are in Millions, Currency in USD

Stock DCF: 73.41 | 22.55 | 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	3,492.69	3,590.11	3,623.07	3,125.38	3,712.77	3,794.12	3,877.26	3,962.22	4,049.04	4,137.76
Revenue (%)
Operating Cash Flow	285.70	352.93	300.68	404.92	277.78	354.73	362.50	370.45	378.56	386.86
Operating Cash Flow (%)
Capital Expenditure	-107	-152.39	-202.78	-101.91	-96.98	-142.49	-145.62	-148.81	-152.07	-155.40
Capital Expenditure (%)
Free Cash Flow	178.70	200.54	97.90	303.01	180.80	212.24	216.89	221.64	226.50	231.46

Weighted Average Cost Of Capital

Share price	$ 22.55
Beta	1.417
Diluted Shares Outstanding	62.55
Cost of Debt
Tax Rate	14.88
After-tax Cost of Debt	2.64%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.433
Total Debt	1,223.66
Total Equity	1,410.53
Total Capital	2,634.19
Debt Weighting	46.45
Equity Weighting	53.55
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	3,492.69	3,590.11	3,623.07	3,125.38	3,712.77	3,794.12	3,877.26	3,962.22	4,049.04	4,137.76
Operating Cash Flow	285.70	352.93	300.68	404.92	277.78	354.73	362.50	370.45	378.56	386.86
Capital Expenditure	-107	-152.39	-202.78	-101.91	-96.98	-142.49	-145.62	-148.81	-152.07	-155.40
Free Cash Flow	178.70	200.54	97.90	303.01	180.80	212.24	216.89	221.64	226.50	231.46
WACC
PV LFCF						199.70	192.01	184.63	177.52	170.69
SUM PV LFCF										924.56

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.28
Free cash flow (t + 1)	236.09
Terminal Value	5,516.12
Present Value of Terminal Value	4,067.96

Intrinsic Value

Enterprise Value	4,992.52
Net Debt	400.52
Equity Value	4,591.99
Shares Outstanding	62.55
Equity Value Per Share	73.41