Discounted Cash Flow (DCF) Analysis Levered

Dollar General Corporation (DG)

$229.1312

+1.04 (+0.46%)
All numbers are in Millions, Currency in USD
Stock DCF: 459.40 | 229.1312 | 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 23,470.9725,625.0427,753.9733,746.8434,220.4537,683.7241,497.4945,697.2350,32255,414.82
Revenue (%)
Operating Cash Flow 1,802.112,143.552,2383,876.162,865.813,313.713,649.074,018.374,425.054,872.88
Operating Cash Flow (%)
Capital Expenditure -646.46-734.38-784.84-1,027.96-1,070.46-1,102.04-1,213.57-1,336.39-1,471.64-1,620.58
Capital Expenditure (%)
Free Cash Flow 1,155.651,409.171,453.162,848.201,795.352,211.672,435.502,681.982,953.413,252.31

Weighted Average Cost Of Capital

Share price $ 229.1,312
Beta 0.369
Diluted Shares Outstanding 235.81
Cost of Debt
Tax Rate 21.67
After-tax Cost of Debt 0.87%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.358
Total Debt 14,246.34
Total Equity 54,031.89
Total Capital 68,278.22
Debt Weighting 20.87
Equity Weighting 79.13
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 23,470.9725,625.0427,753.9733,746.8434,220.4537,683.7241,497.4945,697.2350,32255,414.82
Operating Cash Flow 1,802.112,143.552,2383,876.162,865.813,313.713,649.074,018.374,425.054,872.88
Capital Expenditure -646.46-734.38-784.84-1,027.96-1,070.46-1,102.04-1,213.57-1,336.39-1,471.64-1,620.58
Free Cash Flow 1,155.651,409.171,453.162,848.201,795.352,211.672,435.502,681.982,953.413,252.31
WACC
PV LFCF 2,118.052,233.682,355.622,484.212,619.83
SUM PV LFCF 11,811.38

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.42
Free cash flow (t + 1) 3,317.35
Terminal Value 137,080.73
Present Value of Terminal Value 110,422.60

Intrinsic Value

Enterprise Value 122,233.98
Net Debt 13,901.51
Equity Value 108,332.47
Shares Outstanding 235.81
Equity Value Per Share 459.40