Discounted Cash Flow (DCF) Analysis Levered

The Estée Lauder Companies Inc. (EL)

$264.025

-5.52 (-2.05%)
All numbers are in Millions, Currency in USD
Stock DCF: 138.12 | 264.025 | overvalue

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 13,68314,86314,29416,21517,73718,961.7920,271.1521,670.9323,167.3724,767.14
Revenue (%)
Operating Cash Flow 2,5732,5172,2803,6313,0403,459.463,698.353,953.734,226.754,518.61
Operating Cash Flow (%)
Capital Expenditure -629-744-623-637-1,040-900.80-963-1,029.50-1,100.59-1,176.59
Capital Expenditure (%)
Free Cash Flow 1,9441,7731,6572,9942,0002,558.662,735.342,924.233,126.153,342.02

Weighted Average Cost Of Capital

Share price $ 264.025
Beta 0.943
Diluted Shares Outstanding 364.90
Cost of Debt
Tax Rate 21.28
After-tax Cost of Debt 1.87%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.071
Total Debt 7,012
Total Equity 96,342.72
Total Capital 103,354.72
Debt Weighting 6.78
Equity Weighting 93.22
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 13,68314,86314,29416,21517,73718,961.7920,271.1521,670.9323,167.3724,767.14
Operating Cash Flow 2,5732,5172,2803,6313,0403,459.463,698.353,953.734,226.754,518.61
Capital Expenditure -629-744-623-637-1,040-900.80-963-1,029.50-1,100.59-1,176.59
Free Cash Flow 1,9441,7731,6572,9942,0002,558.662,735.342,924.233,126.153,342.02
WACC
PV LFCF 1,644.101,632.731,621.431,610.221,599.08
SUM PV LFCF 11,720.87

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.65
Free cash flow (t + 1) 3,408.86
Terminal Value 60,333.87
Present Value of Terminal Value 41,734.10

Intrinsic Value

Enterprise Value 53,454.97
Net Debt 3,055
Equity Value 50,399.97
Shares Outstanding 364.90
Equity Value Per Share 138.12