Discounted Cash Flow (DCF) Analysis Levered

The Cheesecake Factory Incorporated (CAKE)

$35.05

-0.15 (-0.43%)
All numbers are in Millions, Currency in USD
Stock DCF: 76.25 | 35.05 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 2,482.691,983.222,927.543,330.043,787.874,308.654,901.025,574.846,341.317,213.15
Revenue (%)
Operating Cash Flow 218.762.91213.01180.20204.97233.16265.21301.67343.15390.33
Operating Cash Flow (%)
Capital Expenditure -75.87-50.91-67.55-88.03-100.13-113.90-129.56-147.37-167.63-190.68
Capital Expenditure (%)
Free Cash Flow 142.90-48.01145.4692.17104.84119.26135.65154.31175.52199.65

Weighted Average Cost Of Capital

Share price $ 35.05
Beta 1.444
Diluted Shares Outstanding 50.41
Cost of Debt
Tax Rate -31.10
After-tax Cost of Debt 0.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.308
Total Debt 1,840.63
Total Equity 1,767.01
Total Capital 3,607.64
Debt Weighting 51.02
Equity Weighting 48.98
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 2,482.691,983.222,927.543,330.043,787.874,308.654,901.025,574.846,341.317,213.15
Operating Cash Flow 218.762.91213.01180.20204.97233.16265.21301.67343.15390.33
Capital Expenditure -75.87-50.91-67.55-88.03-100.13-113.90-129.56-147.37-167.63-190.68
Free Cash Flow 142.90-48.01145.4692.17104.84119.26135.65154.31175.52199.65
WACC
PV LFCF 96.98104.84113.34122.53132.46143.20154.80
SUM PV LFCF 666.33

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.22
Free cash flow (t + 1) 203.64
Terminal Value 6,324.37
Present Value of Terminal Value 4,903.72

Intrinsic Value

Enterprise Value 5,570.05
Net Debt 1,725.85
Equity Value 3,844.20
Shares Outstanding 50.41
Equity Value Per Share 76.25