Discounted Cash Flow (DCF) Analysis Levered

Kohl's Corporation (KSS)

$33.3

-1.25 (-3.62%)
All numbers are in Millions, Currency in USD
Stock DCF: 147.31 | 33.3 | 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 19,09520,22919,97415,95519,43319,741.7820,055.4720,374.1420,697.8821,026.76
Revenue (%)
Operating Cash Flow 1,6912,1071,6571,3382,2711,880.981,910.871,941.231,972.082,003.41
Operating Cash Flow (%)
Capital Expenditure -672-578-855-334-605-626.36-636.31-646.42-656.69-667.13
Capital Expenditure (%)
Free Cash Flow 1,0191,5298021,0041,6661,254.631,274.561,294.811,315.391,336.29

Weighted Average Cost Of Capital

Share price $ 33.3
Beta 1.682
Diluted Shares Outstanding 148
Cost of Debt
Tax Rate 23.05
After-tax Cost of Debt 2.95%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.579
Total Debt 6,785
Total Equity 4,928.40
Total Capital 11,713.40
Debt Weighting 57.93
Equity Weighting 42.07
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 19,09520,22919,97415,95519,43319,741.7820,055.4720,374.1420,697.8821,026.76
Operating Cash Flow 1,6912,1071,6571,3382,2711,880.981,910.871,941.231,972.082,003.41
Capital Expenditure -672-578-855-334-605-626.36-636.31-646.42-656.69-667.13
Free Cash Flow 1,0191,5298021,0041,6661,254.631,274.561,294.811,315.391,336.29
WACC
PV LFCF 1,177.171,122.041,069.501,019.41971.68
SUM PV LFCF 5,359.80

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.58
Free cash flow (t + 1) 1,363.01
Terminal Value 29,760.12
Present Value of Terminal Value 21,639.95

Intrinsic Value

Enterprise Value 26,999.74
Net Debt 5,198
Equity Value 21,801.74
Shares Outstanding 148
Equity Value Per Share 147.31