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 20,22919,97415,95519,43318,09817,806.0517,518.8117,236.2016,958.1516,684.59
Revenue (%)
Operating Cash Flow 2,1071,6571,3382,2712821,436.671,413.491,390.691,368.251,346.18
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 1,5298021,0041,666-544834.52821.06807.81794.78781.96

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 20,22919,97415,95519,43318,09817,806.0517,518.8117,236.2016,958.1516,684.59
Operating Cash Flow 2,1071,6571,3382,2712821,436.671,413.491,390.691,368.251,346.18
Capital Expenditure -578-855-334-605-826-602.15-592.43-582.88-573.48-564.22
Free Cash Flow 1,5298021,0041,666-544834.52821.06807.81794.78781.96
WACC
PV LFCF 798.05750.86706.46664.69625.39
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