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
Stock DCF: 357.53 | 328.035 | undervalue

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 100,904108,203110,225132,110151,157167,547.97185,716.32205,854.80228,177.02252,919.79
Revenue (%)
Operating Cash Flow 12,03113,03813,72318,83916,57120,657.2022,897.2025,380.1028,132.2331,182.80
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 10,13410,59611,04516,37614,00517,263.2219,135.1921,210.1523,510.1126,059.47

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 100,904108,203110,225132,110151,157167,547.97185,716.32205,854.80228,177.02252,919.79
Operating Cash Flow 12,03113,03813,72318,83916,57120,657.2022,897.2025,380.1028,132.2331,182.80
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 10,13410,59611,04516,37614,00517,263.2219,135.1921,210.1523,510.1126,059.47
WACC
PV LFCF 16,072.2716,586.0617,116.2917,663.4618,228.12
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