Discounted Cash Flow (DCF) Analysis Levered

Dillard's, Inc. (DDS)

$386.49

+6.84 (+1.80%)

All numbers are in Millions, Currency in USD

Stock DCF: 437.13 | 386.49 | 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	6,422.68	6,503.35	6,343.21	4,433.18	6,624.27	6,924.13	7,237.57	7,565.19	7,907.64	8,265.60
Revenue (%)
Operating Cash Flow	274.29	367.29	365.07	252.95	1,280.02	563.66	589.17	615.84	643.72	672.86
Operating Cash Flow (%)
Capital Expenditure	-130.46	-137.06	-103.38	-60.45	-104.36	-120.59	-126.05	-131.75	-137.72	-143.95
Capital Expenditure (%)
Free Cash Flow	143.82	230.22	261.69	192.49	1,175.66	443.07	463.13	484.09	506.01	528.91

Weighted Average Cost Of Capital

Share price	$ 386.49
Beta	0.848
Diluted Shares Outstanding	20.60
Cost of Debt
Tax Rate	20.76
After-tax Cost of Debt	5.85%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.552
Total Debt	608.73
Total Equity	7,961.69
Total Capital	8,570.42
Debt Weighting	7.10
Equity Weighting	92.90
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	6,422.68	6,503.35	6,343.21	4,433.18	6,624.27	6,924.13	7,237.57	7,565.19	7,907.64	8,265.60
Operating Cash Flow	274.29	367.29	365.07	252.95	1,280.02	563.66	589.17	615.84	643.72	672.86
Capital Expenditure	-130.46	-137.06	-103.38	-60.45	-104.36	-120.59	-126.05	-131.75	-137.72	-143.95
Free Cash Flow	143.82	230.22	261.69	192.49	1,175.66	443.07	463.13	484.09	506.01	528.91
WACC
PV LFCF						412.43	401.28	390.44	379.89	369.62
SUM PV LFCF										1,953.65

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.43
Free cash flow (t + 1)	539.49
Terminal Value	9,935.36
Present Value of Terminal Value	6,943.14

Intrinsic Value

Enterprise Value	8,896.79
Net Debt	-108.03
Equity Value	9,004.82
Shares Outstanding	20.60
Equity Value Per Share	437.13