Discounted Cash Flow (DCF) Analysis Levered

Foot Locker, Inc. (FL)

$45.88

-0.51 (-1.10%)

All numbers are in Millions, Currency in USD

Stock DCF: 173.41 | 45.88 | 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	7,782	7,939	8,005	7,548	8,958	9,312.30	9,680.61	10,063.48	10,461.50	10,875.26
Revenue (%)
Operating Cash Flow	813	781	696	1,062	666	940.24	977.43	1,016.09	1,056.27	1,098.05
Operating Cash Flow (%)
Capital Expenditure	-274	-187	-187	-159	-209	-235.64	-244.96	-254.65	-264.72	-275.19
Capital Expenditure (%)
Free Cash Flow	539	594	509	903	457	704.60	732.47	761.44	791.56	822.86

Weighted Average Cost Of Capital

Share price	$ 45.88
Beta	1.213
Diluted Shares Outstanding	105.10
Cost of Debt
Tax Rate	27.98
After-tax Cost of Debt	0.36%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.345
Total Debt	3,392
Total Equity	4,821.99
Total Capital	8,213.99
Debt Weighting	41.30
Equity Weighting	58.70
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	7,782	7,939	8,005	7,548	8,958	9,312.30	9,680.61	10,063.48	10,461.50	10,875.26
Operating Cash Flow	813	781	696	1,062	666	940.24	977.43	1,016.09	1,056.27	1,098.05
Capital Expenditure	-274	-187	-187	-159	-209	-235.64	-244.96	-254.65	-264.72	-275.19
Free Cash Flow	539	594	509	903	457	704.60	732.47	761.44	791.56	822.86
WACC
PV LFCF						507.25	499.21	491.29	483.50	475.83
SUM PV LFCF										3,231.13

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.63
Free cash flow (t + 1)	839.32
Terminal Value	23,121.75
Present Value of Terminal Value	17,582.65

Intrinsic Value

Enterprise Value	20,813.78
Net Debt	2,588
Equity Value	18,225.78
Shares Outstanding	105.10
Equity Value Per Share	173.41