Discounted Cash Flow (DCF) Analysis Levered

Guess', Inc. (GES)

$21.8

-1.03 (-4.51%)

All numbers are in Millions, Currency in USD

Stock DCF: 21.11 | 21.8 | 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	2,363.75	2,609.69	2,678.11	1,876.53	2,591.63	2,729.01	2,873.67	3,025.99	3,186.39	3,355.30
Revenue (%)
Operating Cash Flow	148.37	81.68	197.91	209.05	131.64	180.20	189.76	199.82	210.41	221.56
Operating Cash Flow (%)
Capital Expenditure	-84.65	-108.12	-61.87	-18.88	-63.52	-73.64	-77.54	-81.65	-85.98	-90.53
Capital Expenditure (%)
Free Cash Flow	63.72	-26.44	136.05	190.17	68.12	106.57	112.22	118.17	124.43	131.03

Weighted Average Cost Of Capital

Share price	$ 21.8
Beta	1.902
Diluted Shares Outstanding	65.92
Cost of Debt
Tax Rate	32.46
After-tax Cost of Debt	1.35%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.619
Total Debt	1,153.22
Total Equity	1,437.03
Total Capital	2,590.25
Debt Weighting	44.52
Equity Weighting	55.48
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	2,363.75	2,609.69	2,678.11	1,876.53	2,591.63	2,729.01	2,873.67	3,025.99	3,186.39	3,355.30
Operating Cash Flow	148.37	81.68	197.91	209.05	131.64	180.20	189.76	199.82	210.41	221.56
Capital Expenditure	-84.65	-108.12	-61.87	-18.88	-63.52	-73.64	-77.54	-81.65	-85.98	-90.53
Free Cash Flow	63.72	-26.44	136.05	190.17	68.12	106.57	112.22	118.17	124.43	131.03
WACC
PV LFCF						92.05	90.08	88.15	86.27	84.43
SUM PV LFCF										474.49

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.60
Free cash flow (t + 1)	133.65
Terminal Value	2,386.54
Present Value of Terminal Value	1,654.65

Intrinsic Value

Enterprise Value	2,129.14
Net Debt	737.65
Equity Value	1,391.49
Shares Outstanding	65.92
Equity Value Per Share	21.11