Discounted Cash Flow (DCF) Analysis Levered

Hanesbrands Inc. (HBI)

$4.62

-0.01 (-0.22%)
All numbers are in Millions, Currency in USD
Stock DCF: 1,833.94 | 4.62 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 6,803.956,966.927,133.797,304.667,479.627,658.787,842.228,030.058,222.398,419.33
Revenue (%)
Operating Cash Flow 643.40803.43748.63766.57784.93803.73822.98842.69862.87883.54
Operating Cash Flow (%)
Capital Expenditure -86.29-101.08-96.99-99.31-101.69-104.13-106.62-109.18-111.79-114.47
Capital Expenditure (%)
Free Cash Flow 557.11702.35651.64667.25683.23699.60716.36733.51751.08769.07

Weighted Average Cost Of Capital

Share price $ 4.62
Beta 1.582
Diluted Shares Outstanding 349.97
Cost of Debt
Tax Rate 136.06
After-tax Cost of Debt -1.32%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.214
Total Debt 4,300.52
Total Equity 1,616.86
Total Capital 5,917.38
Debt Weighting 72.68
Equity Weighting 27.32
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 6,803.956,966.927,133.797,304.667,479.627,658.787,842.228,030.058,222.398,419.33
Operating Cash Flow 643.40803.43748.63766.57784.93803.73822.98842.69862.87883.54
Capital Expenditure -86.29-101.08-96.99-99.31-101.69-104.13-106.62-109.18-111.79-114.47
Free Cash Flow 557.11702.35651.64667.25683.23699.60716.36733.51751.08769.07
WACC
PV LFCF 612.08613.79615.50617.22618.94620.67622.40624.14
SUM PV LFCF 3,444.90

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 2.11
Free cash flow (t + 1) 784.45
Terminal Value 713,139.60
Present Value of Terminal Value 642,440.89

Intrinsic Value

Enterprise Value 645,885.79
Net Debt 4,062.10
Equity Value 641,823.69
Shares Outstanding 349.97
Equity Value Per Share 1,833.94