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
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 | 11.876 |
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 | 846.95 | 763.49 | 688.25 | 620.42 | 559.28 | |||||
SUM PV LFCF | 3,478.39 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 9.42 |
Free cash flow (t + 1) | 894.78 |
Terminal Value | 12,059.01 |
Present Value of Terminal Value | 7,688.26 |
Intrinsic Value
Enterprise Value | 11,166.66 |
---|---|
Net Debt | 5,552 |
Equity Value | 5,614.66 |
Shares Outstanding | 281 |
Equity Value Per Share | 19.98 |