Discounted Cash Flow (DCF) Analysis Levered
Loblaw Companies Limited (L.TO)
$115.4
+0.12 (+0.10%)
All numbers are in Millions, Currency in USD
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 | 46,693 | 48,037 | 52,714 | 53,170 | 56,504 | 59,293.90 | 62,221.56 | 65,293.76 | 68,517.66 | 71,900.74 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,501 | 3,960 | 5,191 | 4,827 | 4,755 | 4,855.12 | 5,094.84 | 5,346.40 | 5,610.38 | 5,887.40 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -1,334 | -1,193 | -1,158 | -1,182 | -1,571 | -1,487.16 | -1,560.59 | -1,637.65 | -1,718.51 | -1,803.36 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,167 | 2,767 | 4,033 | 3,645 | 3,184 | 3,367.96 | 3,534.25 | 3,708.76 | 3,891.88 | 4,084.04 |
Weighted Average Cost Of Capital
| Share price | $ 115.4 |
|---|---|
| Beta | 0.086 |
| Diluted Shares Outstanding | 331.70 |
| Cost of Debt | |
| Tax Rate | 27.75 |
| After-tax Cost of Debt | 2.82% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 4.980 |
| Total Debt | 17,606 |
| Total Equity | 38,278.18 |
| Total Capital | 55,884.18 |
| Debt Weighting | 31.50 |
| Equity Weighting | 68.50 |
| 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 | 46,693 | 48,037 | 52,714 | 53,170 | 56,504 | 59,293.90 | 62,221.56 | 65,293.76 | 68,517.66 | 71,900.74 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,501 | 3,960 | 5,191 | 4,827 | 4,755 | 4,855.12 | 5,094.84 | 5,346.40 | 5,610.38 | 5,887.40 |
| Capital Expenditure | -1,334 | -1,193 | -1,158 | -1,182 | -1,571 | -1,487.16 | -1,560.59 | -1,637.65 | -1,718.51 | -1,803.36 |
| Free Cash Flow | 1,167 | 2,767 | 4,033 | 3,645 | 3,184 | 3,367.96 | 3,534.25 | 3,708.76 | 3,891.88 | 4,084.04 |
| WACC | ||||||||||
| PV LFCF | 3,229.11 | 3,248.84 | 3,268.70 | 3,288.68 | 3,308.78 | |||||
| SUM PV LFCF | 16,344.12 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.30 |
| Free cash flow (t + 1) | 4,165.72 |
| Terminal Value | 181,118.26 |
| Present Value of Terminal Value | 146,737.36 |
Intrinsic Value
| Enterprise Value | 163,081.47 |
|---|---|
| Net Debt | 15,998 |
| Equity Value | 147,083.47 |
| Shares Outstanding | 331.70 |
| Equity Value Per Share | 443.42 |