Discounted Cash Flow (DCF) Analysis Levered

Hanesbrands Inc. (HBI)

$6.41

-0.31 (-4.61%)
All numbers are in Millions, Currency in USD
Stock DCF: 84.86 | 6.41 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 6,471.416,803.956,966.927,229.367,501.697,784.278,077.508,381.778,697.519,025.149,365.11
Revenue (%)
Operating Cash Flow 655.72643.40803.43749.95778.20807.51837.93869.50902.25936.24971.50
Operating Cash Flow (%)
Capital Expenditure -87.01-86.29-101.08-97.93-101.62-105.44-109.41-113.54-117.81-122.25-126.86
Capital Expenditure (%)
Free Cash Flow 568.71557.11702.35652.02676.58702.07728.52755.96784.44813.98844.65

Weighted Average Cost Of Capital

Share price $ 6.41
Beta 1.484
Diluted Shares Outstanding 352.08
Cost of Debt
Tax Rate 86.71
After-tax Cost of Debt 0.58%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.594
Total Debt 3,742.47
Total Equity 2,256.82
Total Capital 5,999.29
Debt Weighting 62.38
Equity Weighting 37.62
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 6,471.416,803.956,966.927,229.367,501.697,784.278,077.508,381.778,697.519,025.149,365.11
Operating Cash Flow 655.72643.40803.43749.95778.20807.51837.93869.50902.25936.24971.50
Capital Expenditure -87.01-86.29-101.08-97.93-101.62-105.44-109.41-113.54-117.81-122.25-126.86
Free Cash Flow 568.71557.11702.35652.02676.58702.07728.52755.96784.44813.98844.65
WACC
PV LFCF 680.38676.58672.80669.04665.30661.59657.89654.21
SUM PV LFCF 3,451.94

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.35
Free cash flow (t + 1) 861.54
Terminal Value 36,661.26
Present Value of Terminal Value 29,630.92

Intrinsic Value

Enterprise Value 33,082.86
Net Debt 3,206.19
Equity Value 29,876.67
Shares Outstanding 352.08
Equity Value Per Share 84.86