Discounted Cash Flow (DCF) Analysis Levered

Bath & Body Works, Inc. (LB)

$79.92

-0.15 (-%)
All numbers are in Millions, Currency in USD
Stock DCF: 19.57 | 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 12,57412,63213,23712,91411,84711,685.5311,526.2611,369.1711,214.2111,061.37
Revenue (%)
Operating Cash Flow 1,8901,4061,3771,2362,0391,480.471,460.291,440.391,420.761,401.39
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 9006997487781,811926.73914.10901.64889.36877.23

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 11.998
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 12,57412,63213,23712,91411,84711,685.5311,526.2611,369.1711,214.2111,061.37
Operating Cash Flow 1,8901,4061,3771,2362,0391,480.471,460.291,440.391,420.761,401.39
Capital Expenditure -990-707-629-458-228-553.74-546.19-538.74-531.40-524.16
Free Cash Flow 9006997487781,811926.73914.10901.64889.36877.23
WACC
PV LFCF 537.61484.28436.24392.96353.98
SUM PV LFCF 3,471.30

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.50
Free cash flow (t + 1) 894.78
Terminal Value 11,930.38
Present Value of Terminal Value 7,578.51

Intrinsic Value

Enterprise Value 11,049.81
Net Debt 5,552
Equity Value 5,497.81
Shares Outstanding 281
Equity Value Per Share 19.57