Discounted Cash Flow (DCF) Analysis Levered

Bath & Body Works, Inc. (LB)

$79.92

-0.15 (-0.19%)

All numbers are in Millions, Currency in USD

Stock DCF: 20.41 | 79.92 | overvalue

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	12,574	12,632	13,237	12,914	11,847	11,685.53	11,526.26	11,369.17	11,214.21	11,061.37
Revenue (%)
Operating Cash Flow	1,890	1,406	1,377	1,236	2,039	1,480.47	1,460.29	1,440.39	1,420.76	1,401.39
Operating Cash Flow (%)
Capital Expenditure	-990	-707	-629	-458	-228	-553.74	-546.19	-538.74	-531.40	-524.16
Capital Expenditure (%)
Free Cash Flow	900	699	748	778	1,811	926.73	914.10	901.64	889.36	877.23

Weighted Average Cost Of Capital

Share price	$ 79.92
Beta	1.776
Diluted Shares Outstanding	281
Cost of Debt
Tax Rate	22.71
After-tax Cost of Debt	3.58%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.762
Total Debt	9,455
Total Equity	22,457.52
Total Capital	31,912.52
Debt Weighting	29.63
Equity Weighting	70.37
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	12,574	12,632	13,237	12,914	11,847	11,685.53	11,526.26	11,369.17	11,214.21	11,061.37
Operating Cash Flow	1,890	1,406	1,377	1,236	2,039	1,480.47	1,460.29	1,440.39	1,420.76	1,401.39
Capital Expenditure	-990	-707	-629	-458	-228	-553.74	-546.19	-538.74	-531.40	-524.16
Free Cash Flow	900	699	748	778	1,811	926.73	914.10	901.64	889.36	877.23
WACC
PV LFCF						542.35	489.26	441.37	398.17	359.19
SUM PV LFCF										3,485.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.34
Free cash flow (t + 1)	894.78
Terminal Value	12,190.45
Present Value of Terminal Value	7,800.53

Intrinsic Value

Enterprise Value	11,286.04
Net Debt	5,552
Equity Value	5,734.04
Shares Outstanding	281
Equity Value Per Share	20.41