Discounted Cash Flow (DCF) Analysis Levered

The Estée Lauder Companies Inc. (EL)

$148.83

+0.25 (+0.17%)
All numbers are in Millions, Currency in USD
Stock DCF: 70.23 | 148.83 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 14,86314,29416,21517,73715,91016,255.9116,609.3516,970.4717,339.4417,716.43
Revenue (%)
Operating Cash Flow 2,5172,2803,6313,0401,7312,708.152,767.042,827.202,888.662,951.47
Operating Cash Flow (%)
Capital Expenditure -744-623-637-1,040-3,289-1,294.90-1,323.06-1,351.82-1,381.21-1,411.24
Capital Expenditure (%)
Free Cash Flow 1,7731,6572,9942,000-1,5581,413.251,443.981,475.371,507.451,540.23

Weighted Average Cost Of Capital

Share price $ 148.83
Beta 1.067
Diluted Shares Outstanding 360.90
Cost of Debt
Tax Rate 27.99
After-tax Cost of Debt 2.99%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.195
Total Debt 10,169
Total Equity 53,712.75
Total Capital 63,881.75
Debt Weighting 15.92
Equity Weighting 84.08
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 14,86314,29416,21517,73715,91016,255.9116,609.3516,970.4717,339.4417,716.43
Operating Cash Flow 2,5172,2803,6313,0401,7312,708.152,767.042,827.202,888.662,951.47
Capital Expenditure -744-623-637-1,040-3,289-1,294.90-1,323.06-1,351.82-1,381.21-1,411.24
Free Cash Flow 1,7731,6572,9942,000-1,5581,413.251,443.981,475.371,507.451,540.23
WACC
PV LFCF 1,654.841,562.531,475.371,393.081,315.38
SUM PV LFCF 5,841.17

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.21
Free cash flow (t + 1) 1,601.84
Terminal Value 38,048.37
Present Value of Terminal Value 25,644.79

Intrinsic Value

Enterprise Value 31,485.96
Net Debt 6,140
Equity Value 25,345.96
Shares Outstanding 360.90
Equity Value Per Share 70.23