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 3,492.693,590.113,623.073,125.383,712.773,794.123,877.263,962.224,049.044,137.76
Revenue (%)
Operating Cash Flow 285.70352.93300.68404.92277.78354.73362.50370.45378.56386.86
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 178.70200.5497.90303.01180.80212.24216.89221.64226.50231.46

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 3,492.693,590.113,623.073,125.383,712.773,794.123,877.263,962.224,049.044,137.76
Operating Cash Flow 285.70352.93300.68404.92277.78354.73362.50370.45378.56386.86
Capital Expenditure -107-152.39-202.78-101.91-96.98-142.49-145.62-148.81-152.07-155.40
Free Cash Flow 178.70200.5497.90303.01180.80212.24216.89221.64226.50231.46
WACC
PV LFCF 199.70192.01184.63177.52170.69
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