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	19,095	20,229	19,974	15,955	19,433	19,741.78	20,055.47	20,374.14	20,697.88	21,026.76
Revenue (%)
Operating Cash Flow	1,691	2,107	1,657	1,338	2,271	1,880.98	1,910.87	1,941.23	1,972.08	2,003.41
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	1,019	1,529	802	1,004	1,666	1,254.63	1,274.56	1,294.81	1,315.39	1,336.29

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	19,095	20,229	19,974	15,955	19,433	19,741.78	20,055.47	20,374.14	20,697.88	21,026.76
Operating Cash Flow	1,691	2,107	1,657	1,338	2,271	1,880.98	1,910.87	1,941.23	1,972.08	2,003.41
Capital Expenditure	-672	-578	-855	-334	-605	-626.36	-636.31	-646.42	-656.69	-667.13
Free Cash Flow	1,019	1,529	802	1,004	1,666	1,254.63	1,274.56	1,294.81	1,315.39	1,336.29
WACC
PV LFCF						1,177.17	1,122.04	1,069.50	1,019.41	971.68
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