Discounted Cash Flow (DCF) Analysis Levered
Kontoor Brands, Inc. (KTB)
$47.73
+1.74 (+3.78%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 2,830.11 | 2,764 | 2,548.84 | 2,419.86 | 2,297.42 | 2,181.17 | 2,070.80 | 1,966.01 | 1,866.53 | 1,772.08 | 1,682.41 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||||
| Operating Cash Flow | 168.60 | -96.30 | 777.79 | 266.09 | 252.63 | 239.85 | 227.71 | 216.19 | 205.25 | 194.86 | 185 |
| Operating Cash Flow (%) | |||||||||||
| Capital Expenditure | -26.46 | -22.70 | -37.49 | -26.03 | -24.71 | -23.46 | -22.28 | -21.15 | -20.08 | -19.06 | -18.10 |
| Capital Expenditure (%) | |||||||||||
| Free Cash Flow | 142.14 | -119 | 740.30 | 240.06 | 227.92 | 216.38 | 205.43 | 195.04 | 185.17 | 175.80 | 166.90 |
Weighted Average Cost Of Capital
| Share price | $ 47.73 |
|---|---|
| Beta | 1.176 |
| Diluted Shares Outstanding | 59.09 |
| Cost of Debt | |
| Tax Rate | 20.11 |
| After-tax Cost of Debt | 3.66% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.098 |
| Total Debt | 848.75 |
| Total Equity | 2,820.17 |
| Total Capital | 3,668.93 |
| Debt Weighting | 23.13 |
| Equity Weighting | 76.87 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 2,830.11 | 2,764 | 2,548.84 | 2,419.86 | 2,297.42 | 2,181.17 | 2,070.80 | 1,966.01 | 1,866.53 | 1,772.08 | 1,682.41 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 168.60 | -96.30 | 777.79 | 266.09 | 252.63 | 239.85 | 227.71 | 216.19 | 205.25 | 194.86 | 185 |
| Capital Expenditure | -26.46 | -22.70 | -37.49 | -26.03 | -24.71 | -23.46 | -22.28 | -21.15 | -20.08 | -19.06 | -18.10 |
| Free Cash Flow | 142.14 | -119 | 740.30 | 240.06 | 227.92 | 216.38 | 205.43 | 195.04 | 185.17 | 175.80 | 166.90 |
| WACC | |||||||||||
| PV LFCF | 258.88 | 227.92 | 200.65 | 176.65 | 155.52 | 136.91 | 120.54 | 106.12 | |||
| SUM PV LFCF | 750.28 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.84 |
| Free cash flow (t + 1) | 170.24 |
| Terminal Value | 2,915.10 |
| Present Value of Terminal Value | 1,998.73 |
Intrinsic Value
| Enterprise Value | 2,749.01 |
|---|---|
| Net Debt | 663.43 |
| Equity Value | 2,085.58 |
| Shares Outstanding | 59.09 |
| Equity Value Per Share | 35.30 |