Discounted Cash Flow (DCF) Analysis Levered

Aritzia Inc. (ATZ.TO)

$36.43

+1.17 (+3.32%)
All numbers are in Millions, Currency in USD
Stock DCF: 47.04 | 36.43 | 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 874.30980.59857.321,494.632,195.632,858.853,722.404,846.806,310.838,217.10
Revenue (%)
Operating Cash Flow 96.17222.08133.95338.3574.91430.66560.75730.13950.681,237.84
Operating Cash Flow (%)
Capital Expenditure -62.01-47.79-50.85-67.02-125.59-160.67-209.21-272.40-354.68-461.82
Capital Expenditure (%)
Free Cash Flow 34.16174.2983.10271.33-50.67269.99351.54457.73595.99776.02

Weighted Average Cost Of Capital

Share price $ 36.43
Beta 1.826
Diluted Shares Outstanding 115.30
Cost of Debt
Tax Rate 28.89
After-tax Cost of Debt 3.05%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.904
Total Debt 772.01
Total Equity 4,200.42
Total Capital 4,972.42
Debt Weighting 15.53
Equity Weighting 84.47
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 874.30980.59857.321,494.632,195.632,858.853,722.404,846.806,310.838,217.10
Operating Cash Flow 96.17222.08133.95338.3574.91430.66560.75730.13950.681,237.84
Capital Expenditure -62.01-47.79-50.85-67.02-125.59-160.67-209.21-272.40-354.68-461.82
Free Cash Flow 34.16174.2983.10271.33-50.67269.99351.54457.73595.99776.02
WACC
PV LFCF 242.43283.43331.36387.41452.93
SUM PV LFCF 1,697.56

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.37
Free cash flow (t + 1) 783.78
Terminal Value 7,558.17
Present Value of Terminal Value 4,411.39

Intrinsic Value

Enterprise Value 6,108.95
Net Debt 685.50
Equity Value 5,423.45
Shares Outstanding 115.30
Equity Value Per Share 47.04