Discounted Cash Flow (DCF) Analysis Levered

The Home Depot, Inc. (HD)

$371.96

+0.62 (+0.17%)
All numbers are in Millions, Currency in USD
Stock DCF: 343.69 | 371.96 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 110,225132,110151,157157,403152,669166,179.04180,884.61196,891.51214,314.90233,280.13
Revenue (%)
Operating Cash Flow 13,72318,83916,57114,61521,17220,215.9622,004.9223,952.1926,071.7728,378.92
Operating Cash Flow (%)
Capital Expenditure -2,678-2,463-2,566-3,119-3,226-3,352.20-3,648.84-3,971.74-4,323.21-4,705.78
Capital Expenditure (%)
Free Cash Flow 11,04516,37614,00511,49617,94616,863.7618,356.0719,980.4521,748.5623,673.14

Weighted Average Cost Of Capital

Share price $ 371.96
Beta 0.981
Diluted Shares Outstanding 1,002
Cost of Debt
Tax Rate 24.00
After-tax Cost of Debt 3.26%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.915
Total Debt 50,364
Total Equity 372,703.92
Total Capital 423,067.92
Debt Weighting 11.90
Equity Weighting 88.10
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 110,225132,110151,157157,403152,669166,179.04180,884.61196,891.51214,314.90233,280.13
Operating Cash Flow 13,72318,83916,57114,61521,17220,215.9622,004.9223,952.1926,071.7728,378.92
Capital Expenditure -2,678-2,463-2,566-3,119-3,226-3,352.20-3,648.84-3,971.74-4,323.21-4,705.78
Free Cash Flow 11,04516,37614,00511,49617,94616,863.7618,356.0719,980.4521,748.5623,673.14
WACC
PV LFCF 13,298.1513,372.9913,448.2713,523.9613,600.08
SUM PV LFCF 78,781.73

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.24
Free cash flow (t + 1) 24,383.34
Terminal Value 465,330.88
Present Value of Terminal Value 313,200.87

Intrinsic Value

Enterprise Value 391,982.60
Net Debt 47,607
Equity Value 344,375.60
Shares Outstanding 1,002
Equity Value Per Share 343.69