Discounted Cash Flow (DCF) Analysis Levered

Nordstrom, Inc. (JWN)

$24.52

+0.53 (+2.21%)
All numbers are in Millions, Currency in USD
Stock DCF: 67.38 | 24.52 | 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 15,47815,86015,52410,71514,78915,062.3415,340.7415,624.2715,913.0516,207.17
Revenue (%)
Operating Cash Flow 1,4001,2961,236-348705804.26819.13834.27849.69865.39
Operating Cash Flow (%)
Capital Expenditure -731-654-935-385-506-659.25-671.43-683.84-696.48-709.35
Capital Expenditure (%)
Free Cash Flow 669642301-733199145.02147.70150.43153.21156.04

Weighted Average Cost Of Capital

Share price $ 24.52
Beta 2.395
Diluted Shares Outstanding 157.20
Cost of Debt
Tax Rate -27.64
After-tax Cost of Debt -3.68%
Risk-Free Rate
Market Risk Premium
Cost of Equity 14.196
Total Debt 6,691
Total Equity 3,854.54
Total Capital 10,545.54
Debt Weighting 63.45
Equity Weighting 36.55
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 15,47815,86015,52410,71514,78915,062.3415,340.7415,624.2715,913.0516,207.17
Operating Cash Flow 1,4001,2961,236-348705804.26819.13834.27849.69865.39
Capital Expenditure -731-654-935-385-506-659.25-671.43-683.84-696.48-709.35
Free Cash Flow 669642301-733199145.02147.70150.43153.21156.04
WACC
PV LFCF 141139.62138.26136.92135.58
SUM PV LFCF 691.38

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 2.85
Free cash flow (t + 1) 159.16
Terminal Value 18,724.48
Present Value of Terminal Value 16,270.02

Intrinsic Value

Enterprise Value 16,961.41
Net Debt 6,369
Equity Value 10,592.41
Shares Outstanding 157.20
Equity Value Per Share 67.38