Discounted Cash Flow (DCF) Analysis Levered
The Kroger Co. (KR)
$44.125
-0.29 (-0.66%)
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 | 122,662 | 121,162 | 122,286 | 132,498 | 137,888 | 142,067.29 | 146,373.24 | 150,809.71 | 155,380.64 | 160,090.12 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 3,413 | 4,164 | 4,664 | 6,815 | 6,190 | 5,587.73 | 5,757.09 | 5,931.59 | 6,111.37 | 6,296.60 |
| 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 | 604 | 1,197 | 1,536 | 3,950 | 3,576 | 2,361.44 | 2,433.02 | 2,506.76 | 2,582.74 | 2,661.02 |
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 | 122,662 | 121,162 | 122,286 | 132,498 | 137,888 | 142,067.29 | 146,373.24 | 150,809.71 | 155,380.64 | 160,090.12 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 3,413 | 4,164 | 4,664 | 6,815 | 6,190 | 5,587.73 | 5,757.09 | 5,931.59 | 6,111.37 | 6,296.60 |
| 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 | 604 | 1,197 | 1,536 | 3,950 | 3,576 | 2,361.44 | 2,433.02 | 2,506.76 | 2,582.74 | 2,661.02 |
| WACC | ||||||||||
| PV LFCF | 1,801.93 | 1,774.73 | 1,747.94 | 1,721.56 | 1,695.57 | |||||
| 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 |