Discounted Cash Flow (DCF) Analysis Levered

Abercrombie & Fitch Co. (ANF)

$34.24

-0.71 (-2.03%)

All numbers are in Millions, Currency in USD

Stock DCF: 45.22 | 34.24 | undervalue

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	3,590.11	3,623.07	3,125.38	3,712.77	3,697.75	3,749.25	3,801.47	3,854.42	3,908.10	3,962.53
Revenue (%)
Operating Cash Flow	352.93	300.68	404.92	277.78	-2.34	288.72	292.74	296.82	300.96	305.15
Operating Cash Flow (%)
Capital Expenditure	-152.39	-202.78	-101.91	-96.98	-164.57	-151.21	-153.31	-155.45	-157.61	-159.81
Capital Expenditure (%)
Free Cash Flow	200.54	97.90	303.01	180.80	-166.91	137.52	139.43	141.37	143.34	145.34

Weighted Average Cost Of Capital

Share price	$ 34.24
Beta	1.470
Diluted Shares Outstanding	52.33
Cost of Debt
Tax Rate	95.80
After-tax Cost of Debt	0.09%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.682
Total Debt	1,224.19
Total Equity	1,791.68
Total Capital	3,015.87
Debt Weighting	40.59
Equity Weighting	59.41
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	3,590.11	3,623.07	3,125.38	3,712.77	3,697.75	3,749.25	3,801.47	3,854.42	3,908.10	3,962.53
Operating Cash Flow	352.93	300.68	404.92	277.78	-2.34	288.72	292.74	296.82	300.96	305.15
Capital Expenditure	-152.39	-202.78	-101.91	-96.98	-164.57	-151.21	-153.31	-155.45	-157.61	-159.81
Free Cash Flow	200.54	97.90	303.01	180.80	-166.91	137.52	139.43	141.37	143.34	145.34
WACC
PV LFCF						121.52	115.82	110.39	105.21	100.28
SUM PV LFCF										588.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.38
Free cash flow (t + 1)	148.25
Terminal Value	3,384.59
Present Value of Terminal Value	2,484.31

Intrinsic Value

Enterprise Value	3,072.83
Net Debt	706.59
Equity Value	2,366.24
Shares Outstanding	52.33
Equity Value Per Share	45.22