Discounted Cash Flow (DCF) Analysis Levered
Costco Wholesale Corporation (COST)
$515.9
+1.10 (+0.21%)
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 | 141,576 | 152,703 | 166,761 | 195,929 | 226,954 | 255,545.22 | 287,738.30 | 323,987 | 364,802.24 | 410,759.30 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 5,774 | 6,356 | 8,861 | 8,958 | 7,392 | 10,928.86 | 12,305.65 | 13,855.89 | 15,601.43 | 17,566.87 |
| 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 | 2,805 | 3,358 | 6,051 | 5,370 | 3,501 | 6,180.23 | 6,958.81 | 7,835.46 | 8,822.56 | 9,934.01 |
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 | 141,576 | 152,703 | 166,761 | 195,929 | 226,954 | 255,545.22 | 287,738.30 | 323,987 | 364,802.24 | 410,759.30 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 5,774 | 6,356 | 8,861 | 8,958 | 7,392 | 10,928.86 | 12,305.65 | 13,855.89 | 15,601.43 | 17,566.87 |
| 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 | 2,805 | 3,358 | 6,051 | 5,370 | 3,501 | 6,180.23 | 6,958.81 | 7,835.46 | 8,822.56 | 9,934.01 |
| WACC | ||||||||||
| PV LFCF | 4,122.77 | 4,339.27 | 4,567.14 | 4,806.97 | 5,059.39 | |||||
| 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 |