Discounted Cash Flow (DCF) Analysis Levered

Kohl's Corporation (KSS)

$23.54

+0.66 (+2.88%)

All numbers are in Millions, Currency in USD

Stock DCF: 141.58 | 23.54 | undervalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	20,229	19,974	15,955	19,433	18,098	17,806.05	17,518.81	17,236.20	16,958.15	16,684.59
Revenue (%)
Operating Cash Flow	2,107	1,657	1,338	2,271	282	1,436.67	1,413.49	1,390.69	1,368.25	1,346.18
Operating Cash Flow (%)
Capital Expenditure	-578	-855	-334	-605	-826	-602.15	-592.43	-582.88	-573.48	-564.22
Capital Expenditure (%)
Free Cash Flow	1,529	802	1,004	1,666	-544	834.52	821.06	807.81	794.78	781.96

Weighted Average Cost Of Capital

Share price	$ 23.54
Beta	1.724
Diluted Shares Outstanding	148
Cost of Debt
Tax Rate	67.24
After-tax Cost of Debt	1.32%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.629
Total Debt	7,566
Total Equity	3,483.92
Total Capital	11,049.92
Debt Weighting	68.47
Equity Weighting	31.53
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	20,229	19,974	15,955	19,433	18,098	17,806.05	17,518.81	17,236.20	16,958.15	16,684.59
Operating Cash Flow	2,107	1,657	1,338	2,271	282	1,436.67	1,413.49	1,390.69	1,368.25	1,346.18
Capital Expenditure	-578	-855	-334	-605	-826	-602.15	-592.43	-582.88	-573.48	-564.22
Free Cash Flow	1,529	802	1,004	1,666	-544	834.52	821.06	807.81	794.78	781.96
WACC
PV LFCF						798.05	750.86	706.46	664.69	625.39
SUM PV LFCF										3,545.44

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.57
Free cash flow (t + 1)	797.60
Terminal Value	31,034.93
Present Value of Terminal Value	24,820.77

Intrinsic Value

Enterprise Value	28,366.21
Net Debt	7,413
Equity Value	20,953.21
Shares Outstanding	148
Equity Value Per Share	141.58