Discounted Cash Flow (DCF) Analysis Levered

The Cato Corporation (CATO)

$9.54

-0.01 (-0.10%)
All numbers are in Millions, Currency in USD
Stock DCF: 31.33 | 9.54 | 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 849.98829.66825.34575.11769.27770.29771.31772.34773.36774.39
Revenue (%)
Operating Cash Flow 35.9960.2453.40-30.7159.7931.4231.4631.5131.5531.59
Operating Cash Flow (%)
Capital Expenditure -11.10-4.35-8.31-13.96-4.10-8.93-8.94-8.95-8.97-8.98
Capital Expenditure (%)
Free Cash Flow 24.8955.8945.09-44.6755.6822.4922.5222.5522.5822.61

Weighted Average Cost Of Capital

Share price $ 9.54
Beta 0.921
Diluted Shares Outstanding 22.54
Cost of Debt
Tax Rate 5.44
After-tax Cost of Debt 0.04%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.151
Total Debt 184.33
Total Equity 214.99
Total Capital 399.32
Debt Weighting 46.16
Equity Weighting 53.84
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 849.98829.66825.34575.11769.27770.29771.31772.34773.36774.39
Operating Cash Flow 35.9960.2453.40-30.7159.7931.4231.4631.5131.5531.59
Capital Expenditure -11.10-4.35-8.31-13.96-4.10-8.93-8.94-8.95-8.97-8.98
Free Cash Flow 24.8955.8945.09-44.6755.6822.4922.5222.5522.5822.61
WACC
PV LFCF 21.5420.6619.811918.22
SUM PV LFCF 99.24

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.41
Free cash flow (t + 1) 23.06
Terminal Value 957.03
Present Value of Terminal Value 771.29

Intrinsic Value

Enterprise Value 870.53
Net Debt 164.57
Equity Value 705.96
Shares Outstanding 22.54
Equity Value Per Share 31.33