Discounted Cash Flow (DCF) Analysis Levered

Carter's, Inc. (CRI)

$65.53

-0.26 (-0.40%)
All numbers are in Millions, Currency in USD
Stock DCF: 119.16 | 65.53 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 3,400.503,462.273,519.293,580.233,642.223,705.293,769.453,834.723,901.123,968.674,037.39
Revenue (%)
Operating Cash Flow 329.62356.20387.22369.77376.17382.68389.31396.05402.91409.88416.98
Operating Cash Flow (%)
Capital Expenditure -69.47-63.78-61.42-67.19-68.36-69.54-70.75-71.97-73.22-74.48-75.77
Capital Expenditure (%)
Free Cash Flow 260.15292.41325.80302.57307.81313.14318.56324.08329.69335.40341.21

Weighted Average Cost Of Capital

Share price $ 65.53
Beta 1.309
Diluted Shares Outstanding 43.42
Cost of Debt
Tax Rate 22.48
After-tax Cost of Debt 2.95%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.982
Total Debt 1,580.77
Total Equity 2,845.05
Total Capital 4,425.82
Debt Weighting 35.72
Equity Weighting 64.28
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 3,400.503,462.273,519.293,580.233,642.223,705.293,769.453,834.723,901.123,968.674,037.39
Operating Cash Flow 329.62356.20387.22369.77376.17382.68389.31396.05402.91409.88416.98
Capital Expenditure -69.47-63.78-61.42-67.19-68.36-69.54-70.75-71.97-73.22-74.48-75.77
Free Cash Flow 260.15292.41325.80302.57307.81313.14318.56324.08329.69335.40341.21
WACC
PV LFCF 325.17307.81291.37275.82261.09247.15233.95221.46
SUM PV LFCF 1,332.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.47
Free cash flow (t + 1) 348.03
Terminal Value 6,362.53
Present Value of Terminal Value 4,438.07

Intrinsic Value

Enterprise Value 5,770.12
Net Debt 596.47
Equity Value 5,173.64
Shares Outstanding 43.42
Equity Value Per Share 119.16