Discounted Cash Flow (DCF) Analysis Levered

Bed Bath & Beyond Inc. (BBBY)

$0.8158

+0.03 (+3.78%)
All numbers are in Millions, Currency in USD
Stock DCF: 169.30 | 0.8158 | 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 12,349.3012,028.8011,158.589,233.037,867.787,044.176,306.775,646.575,055.484,526.26
Revenue (%)
Operating Cash Flow 859.69918.28590.94268.1117.85324.34290.39259.99232.77208.41
Operating Cash Flow (%)
Capital Expenditure -375.79-325.37-277.40-183.08-354.19-207.36-185.65-166.22-148.82-133.24
Capital Expenditure (%)
Free Cash Flow 483.90592.91313.5485.03-336.33116.98104.7493.7783.9675.17

Weighted Average Cost Of Capital

Share price $ 0.8,158
Beta 1.640
Diluted Shares Outstanding 99.25
Cost of Debt
Tax Rate -18.40
After-tax Cost of Debt 2.13%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.123
Total Debt 3,034.28
Total Equity 80.97
Total Capital 3,115.25
Debt Weighting 97.40
Equity Weighting 2.60
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 12,349.3012,028.8011,158.589,233.037,867.787,044.176,306.775,646.575,055.484,526.26
Operating Cash Flow 859.69918.28590.94268.1117.85324.34290.39259.99232.77208.41
Capital Expenditure -375.79-325.37-277.40-183.08-354.19-207.36-185.65-166.22-148.82-133.24
Free Cash Flow 483.90592.91313.5485.03-336.33116.98104.7493.7783.9675.17
WACC
PV LFCF 114.2999.9687.4476.4866.89
SUM PV LFCF 445.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 2.36
Free cash flow (t + 1) 76.67
Terminal Value 21,297.57
Present Value of Terminal Value 18,953.03

Intrinsic Value

Enterprise Value 19,398.08
Net Debt 2,594.79
Equity Value 16,803.30
Shares Outstanding 99.25
Equity Value Per Share 169.30