Discounted Cash Flow (DCF) Analysis Levered

The Kroger Co. (KR)

$44.125

-0.29 (-0.66%)
All numbers are in Millions, Currency in USD
Stock DCF: 93.60 | 44.125 | 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 122,662121,162122,286132,498137,888142,067.29146,373.24150,809.71155,380.64160,090.12
Revenue (%)
Operating Cash Flow 3,4134,1644,6646,8156,1905,587.735,757.095,931.596,111.376,296.60
Operating Cash Flow (%)
Capital Expenditure -2,809-2,967-3,128-2,865-2,614-3,226.29-3,324.08-3,424.83-3,528.63-3,635.58
Capital Expenditure (%)
Free Cash Flow 6041,1971,5363,9503,5762,361.442,433.022,506.762,582.742,661.02

Weighted Average Cost Of Capital

Share price $ 44.125
Beta 0.501
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 5.974
Total Debt 20,440
Total Equity 35,520.63
Total Capital 55,960.63
Debt Weighting 36.53
Equity Weighting 63.47
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 122,662121,162122,286132,498137,888142,067.29146,373.24150,809.71155,380.64160,090.12
Operating Cash Flow 3,4134,1644,6646,8156,1905,587.735,757.095,931.596,111.376,296.60
Capital Expenditure -2,809-2,967-3,128-2,865-2,614-3,226.29-3,324.08-3,424.83-3,528.63-3,635.58
Free Cash Flow 6041,1971,5363,9503,5762,361.442,433.022,506.762,582.742,661.02
WACC
PV LFCF 1,801.931,774.731,747.941,721.561,695.57
SUM PV LFCF 10,951.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.61
Free cash flow (t + 1) 2,714.24
Terminal Value 103,993.87
Present Value of Terminal Value 83,012.16

Intrinsic Value

Enterprise Value 93,963.41
Net Debt 18,619
Equity Value 75,344.41
Shares Outstanding 805
Equity Value Per Share 93.60