Discounted Cash Flow (DCF) Analysis Levered

Costco Wholesale Corporation (COST)

$515.9

+1.10 (+0.21%)
All numbers are in Millions, Currency in USD
Stock DCF: 401.23 | 515.9 | overvalue

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 141,576152,703166,761195,929226,954255,545.22287,738.30323,987364,802.24410,759.30
Revenue (%)
Operating Cash Flow 5,7746,3568,8618,9587,39210,928.8612,305.6513,855.8915,601.4317,566.87
Operating Cash Flow (%)
Capital Expenditure -2,969-2,998-2,810-3,588-3,891-4,748.62-5,346.85-6,020.43-6,778.87-7,632.86
Capital Expenditure (%)
Free Cash Flow 2,8053,3586,0515,3703,5016,180.236,958.817,835.468,822.569,934.01

Weighted Average Cost Of Capital

Share price $ 515.9
Beta 0.761
Diluted Shares Outstanding 444.76
Cost of Debt
Tax Rate 25.46
After-tax Cost of Debt 1.30%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.208
Total Debt 9,039
Total Equity 229,450.14
Total Capital 238,489.14
Debt Weighting 3.79
Equity Weighting 96.21
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 141,576152,703166,761195,929226,954255,545.22287,738.30323,987364,802.24410,759.30
Operating Cash Flow 5,7746,3568,8618,9587,39210,928.8612,305.6513,855.8915,601.4317,566.87
Capital Expenditure -2,969-2,998-2,810-3,588-3,891-4,748.62-5,346.85-6,020.43-6,778.87-7,632.86
Free Cash Flow 2,8053,3586,0515,3703,5016,180.236,958.817,835.468,822.569,934.01
WACC
PV LFCF 4,122.774,339.274,567.144,806.975,059.39
SUM PV LFCF 32,082.18

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.98
Free cash flow (t + 1) 10,132.69
Terminal Value 203,467.64
Present Value of Terminal Value 145,205.27

Intrinsic Value

Enterprise Value 177,287.45
Net Debt -1,164
Equity Value 178,451.45
Shares Outstanding 444.76
Equity Value Per Share 401.23