Discounted Cash Flow (DCF) Analysis Levered

The Kroger Co. (KR)

$47.46

+0.52 (+1.11%)
All numbers are in Millions, Currency in USD
Stock DCF: 27.64 | 47.46 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 115,337122,662121,162122,286124,754.45127,272.73129,841.84132,462.81135,136.69137,864.54140,647.46
Revenue (%)
Operating Cash Flow 4,2723,4134,1644,6644,284.414,370.904,459.134,549.144,640.974,734.654,830.22
Operating Cash Flow (%)
Capital Expenditure -3,699-2,809-2,967-3,128-3,276.01-3,342.14-3,409.61-3,478.43-3,548.65-3,620.28-3,693.36
Capital Expenditure (%)
Free Cash Flow 5736041,1971,5361,008.401,028.751,049.521,070.701,092.321,114.371,136.86

Weighted Average Cost Of Capital

Share price $ 47.46
Beta 0.493
Diluted Shares Outstanding 805
Cost of Debt
Tax Rate 19.31
After-tax Cost of Debt 2.25%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.817
Total Debt 20,440
Total Equity 38,205.30
Total Capital 58,645.30
Debt Weighting 34.85
Equity Weighting 65.15
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 115,337122,662121,162122,286124,754.45127,272.73129,841.84132,462.81135,136.69137,864.54140,647.46
Operating Cash Flow 4,2723,4134,1644,6644,284.414,370.904,459.134,549.144,640.974,734.654,830.22
Capital Expenditure -3,699-2,809-2,967-3,128-3,276.01-3,342.14-3,409.61-3,478.43-3,548.65-3,620.28-3,693.36
Free Cash Flow 5736041,1971,5361,008.401,028.751,049.521,070.701,092.321,114.371,136.86
WACC
PV LFCF 806.49786.81767.61748.88730.61712.78695.39
SUM PV LFCF 4,779.28

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.57
Free cash flow (t + 1) 1,159.60
Terminal Value 45,120.59
Present Value of Terminal Value 36,086.04

Intrinsic Value

Enterprise Value 40,865.32
Net Debt 18,619
Equity Value 22,246.32
Shares Outstanding 805
Equity Value Per Share 27.64