Discounted Cash Flow (DCF) Analysis Levered
The Home Depot, Inc. (HD)
$328.035
-3.46 (-1.05%)
All numbers are in Millions, Currency in USD
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 | 100,904 | 108,203 | 110,225 | 132,110 | 151,157 | 167,547.97 | 185,716.32 | 205,854.80 | 228,177.02 | 252,919.79 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 12,031 | 13,038 | 13,723 | 18,839 | 16,571 | 20,657.20 | 22,897.20 | 25,380.10 | 28,132.23 | 31,182.80 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -1,897 | -2,442 | -2,678 | -2,463 | -2,566 | -3,393.98 | -3,762.01 | -4,169.95 | -4,622.13 | -5,123.34 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 10,134 | 10,596 | 11,045 | 16,376 | 14,005 | 17,263.22 | 19,135.19 | 21,210.15 | 23,510.11 | 26,059.47 |
Weighted Average Cost Of Capital
| Share price | $ 328.035 |
|---|---|
| Beta | 0.948 |
| Diluted Shares Outstanding | 1,078 |
| Cost of Debt | |
| Tax Rate | 24.40 |
| After-tax Cost of Debt | 2.20% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.097 |
| Total Debt | 46,269 |
| Total Equity | 353,621.73 |
| Total Capital | 399,890.73 |
| Debt Weighting | 11.57 |
| Equity Weighting | 88.43 |
| 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 | 100,904 | 108,203 | 110,225 | 132,110 | 151,157 | 167,547.97 | 185,716.32 | 205,854.80 | 228,177.02 | 252,919.79 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 12,031 | 13,038 | 13,723 | 18,839 | 16,571 | 20,657.20 | 22,897.20 | 25,380.10 | 28,132.23 | 31,182.80 |
| Capital Expenditure | -1,897 | -2,442 | -2,678 | -2,463 | -2,566 | -3,393.98 | -3,762.01 | -4,169.95 | -4,622.13 | -5,123.34 |
| Free Cash Flow | 10,134 | 10,596 | 11,045 | 16,376 | 14,005 | 17,263.22 | 19,135.19 | 21,210.15 | 23,510.11 | 26,059.47 |
| WACC | ||||||||||
| PV LFCF | 16,072.27 | 16,586.06 | 17,116.29 | 17,663.46 | 18,228.12 | |||||
| SUM PV LFCF | 85,666.20 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.41 |
| Free cash flow (t + 1) | 26,580.66 |
| Terminal Value | 491,324.50 |
| Present Value of Terminal Value | 343,672.55 |
Intrinsic Value
| Enterprise Value | 429,338.75 |
|---|---|
| Net Debt | 43,926 |
| Equity Value | 385,412.75 |
| Shares Outstanding | 1,078 |
| Equity Value Per Share | 357.53 |