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
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 | 42,151 | 42,879 | 43,638 | 47,262 | 51,761 | 54,520.01 | 57,426.09 | 60,487.07 | 63,711.21 | 67,107.21 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,141 | 2,408 | 2,565 | 4,927 | 3,252 | 3,628.92 | 3,822.36 | 4,026.10 | 4,240.70 | 4,466.74 |
| 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 | 1,453 | 1,589 | 1,822 | 4,214 | 2,515 | 2,737.26 | 2,883.17 | 3,036.85 | 3,198.72 | 3,369.22 |
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 | 42,151 | 42,879 | 43,638 | 47,262 | 51,761 | 54,520.01 | 57,426.09 | 60,487.07 | 63,711.21 | 67,107.21 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,141 | 2,408 | 2,565 | 4,927 | 3,252 | 3,628.92 | 3,822.36 | 4,026.10 | 4,240.70 | 4,466.74 |
| Capital Expenditure | -688 | -819 | -743 | -713 | -737 | -891.66 | -939.19 | -989.25 | -1,041.98 | -1,097.52 |
| Free Cash Flow | 1,453 | 1,589 | 1,822 | 4,214 | 2,515 | 2,737.26 | 2,883.17 | 3,036.85 | 3,198.72 | 3,369.22 |
| WACC | ||||||||||
| PV LFCF | 2,532.63 | 2,468.19 | 2,405.40 | 2,344.20 | 2,284.56 | |||||
| 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 |