Discounted Cash Flow (DCF) Analysis Levered

Best Buy Co., Inc. (BBY)

$83.99

+1.94 (+2.36%)
All numbers are in Millions, Currency in USD
Stock DCF: 198.19 | 83.99 | 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 42,15142,87943,63847,26251,76154,520.0157,426.0960,487.0763,711.2167,107.21
Revenue (%)
Operating Cash Flow 2,1412,4082,5654,9273,2523,628.923,822.364,026.104,240.704,466.74
Operating Cash Flow (%)
Capital Expenditure -688-819-743-713-737-891.66-939.19-989.25-1,041.98-1,097.52
Capital Expenditure (%)
Free Cash Flow 1,4531,5891,8224,2142,5152,737.262,883.173,036.853,198.723,369.22

Weighted Average Cost Of Capital

Share price $ 83.99
Beta 1.429
Diluted Shares Outstanding 249.30
Cost of Debt
Tax Rate 18.85
After-tax Cost of Debt 0.52%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.486
Total Debt 3,888
Total Equity 20,938.71
Total Capital 24,826.71
Debt Weighting 15.66
Equity Weighting 84.34
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 42,15142,87943,63847,26251,76154,520.0157,426.0960,487.0763,711.2167,107.21
Operating Cash Flow 2,1412,4082,5654,9273,2523,628.923,822.364,026.104,240.704,466.74
Capital Expenditure -688-819-743-713-737-891.66-939.19-989.25-1,041.98-1,097.52
Free Cash Flow 1,4531,5891,8224,2142,5152,737.262,883.173,036.853,198.723,369.22
WACC
PV LFCF 2,532.632,468.192,405.402,344.202,284.56
SUM PV LFCF 12,034.99

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.08
Free cash flow (t + 1) 3,436.61
Terminal Value 56,523.17
Present Value of Terminal Value 38,326.56

Intrinsic Value

Enterprise Value 50,361.55
Net Debt 952
Equity Value 49,409.55
Shares Outstanding 249.30
Equity Value Per Share 198.19