Discounted Cash Flow (DCF) Analysis Levered

Loblaw Companies Limited (L.TO)

$112.65

+0.11 (+0.10%)
All numbers are in Millions, Currency in USD
Stock DCF: 468.66 | 112.65 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 46,70246,69348,03752,71453,17054,959.2256,808.6658,720.3260,696.3262,738.81
Revenue (%)
Operating Cash Flow 3,2092,5013,9605,1914,8274,330.464,476.194,626.814,782.514,943.45
Operating Cash Flow (%)
Capital Expenditure -1,259-1,334-1,193-1,158-1,182-1,369.15-1,415.23-1,462.85-1,512.08-1,562.96
Capital Expenditure (%)
Free Cash Flow 1,9501,1672,7674,0333,6452,961.313,060.963,163.963,270.433,380.49

Weighted Average Cost Of Capital

Share price $ 112.65
Beta -0.006
Diluted Shares Outstanding 355.50
Cost of Debt
Tax Rate 23.22
After-tax Cost of Debt 3.20%
Risk-Free Rate
Market Risk Premium
Cost of Equity 3.938
Total Debt 16,554
Total Equity 40,047.07
Total Capital 56,601.07
Debt Weighting 29.25
Equity Weighting 70.75
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 46,70246,69348,03752,71453,17054,959.2256,808.6658,720.3260,696.3262,738.81
Operating Cash Flow 3,2092,5013,9605,1914,8274,330.464,476.194,626.814,782.514,943.45
Capital Expenditure -1,259-1,334-1,193-1,158-1,182-1,369.15-1,415.23-1,462.85-1,512.08-1,562.96
Free Cash Flow 1,9501,1672,7674,0333,6452,961.313,060.963,163.963,270.433,380.49
WACC
PV LFCF 2,855.102,845.332,835.592,825.892,816.22
SUM PV LFCF 14,178.13

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.72
Free cash flow (t + 1) 3,448.10
Terminal Value 200,470.66
Present Value of Terminal Value 167,008.39

Intrinsic Value

Enterprise Value 181,186.52
Net Debt 14,578
Equity Value 166,608.52
Shares Outstanding 355.50
Equity Value Per Share 468.66