Discounted Cash Flow (DCF) Analysis Levered

Citi Trends, Inc. (CTRN)

$18.42

-0.13 (-0.70%)

All numbers are in Millions, Currency in USD

Stock DCF: 141.14 | 18.42 | 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	755.24	769.55	781.93	783.29	991.60	1,066.64	1,147.36	1,234.18	1,327.58	1,428.05
Revenue (%)
Operating Cash Flow	42.30	30.41	42.61	110.86	74.32	78.18	84.10	90.47	97.31	104.68
Operating Cash Flow (%)
Capital Expenditure	-20.99	-13.26	-24.18	-16.96	-29.71	-27.21	-29.27	-31.48	-33.86	-36.43
Capital Expenditure (%)
Free Cash Flow	21.32	17.15	18.43	93.90	44.61	50.98	54.84	58.99	63.45	68.25

Weighted Average Cost Of Capital

Share price	$ 18.42
Beta	2.287
Diluted Shares Outstanding	9.01
Cost of Debt
Tax Rate	21.46
After-tax Cost of Debt	0.11%
Risk-Free Rate
Market Risk Premium
Cost of Equity	14.349
Total Debt	216.11
Total Equity	166.02
Total Capital	382.13
Debt Weighting	56.55
Equity Weighting	43.45
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	755.24	769.55	781.93	783.29	991.60	1,066.64	1,147.36	1,234.18	1,327.58	1,428.05
Operating Cash Flow	42.30	30.41	42.61	110.86	74.32	78.18	84.10	90.47	97.31	104.68
Capital Expenditure	-20.99	-13.26	-24.18	-16.96	-29.71	-27.21	-29.27	-31.48	-33.86	-36.43
Free Cash Flow	21.32	17.15	18.43	93.90	44.61	50.98	54.84	58.99	63.45	68.25
WACC
PV LFCF						47.96	48.53	49.11	49.69	50.29
SUM PV LFCF										245.57

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.30
Free cash flow (t + 1)	69.62
Terminal Value	1,618.96
Present Value of Terminal Value	1,192.81

Intrinsic Value

Enterprise Value	1,438.38
Net Debt	166.32
Equity Value	1,272.06
Shares Outstanding	9.01
Equity Value Per Share	141.14