Discounted Cash Flow (DCF) Analysis Levered
Lowe's Companies, Inc. (LOW)
$216.2
+0.23 (+0.11%)
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 | 68,619 | 71,309 | 72,148 | 89,597 | 96,250 | 105,082.68 | 114,725.92 | 125,254.10 | 136,748.44 | 149,297.59 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 5,065 | 6,193 | 4,296 | 11,049 | 10,113 | 9,427.89 | 10,293.07 | 11,237.65 | 12,268.91 | 13,394.80 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -1,123 | -1,174 | -1,484 | -1,791 | -1,853 | -1,946.96 | -2,125.63 | -2,320.70 | -2,533.66 | -2,766.17 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 3,942 | 5,019 | 2,812 | 9,258 | 8,260 | 7,480.93 | 8,167.44 | 8,916.95 | 9,735.24 | 10,628.63 |
Weighted Average Cost Of Capital
| Share price | $ 216.2 |
|---|---|
| Beta | 1.129 |
| Diluted Shares Outstanding | 699 |
| Cost of Debt | |
| Tax Rate | 24.68 |
| After-tax Cost of Debt | 2.30% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.943 |
| Total Debt | 29,384 |
| Total Equity | 151,123.80 |
| Total Capital | 180,507.80 |
| Debt Weighting | 16.28 |
| Equity Weighting | 83.72 |
| 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 | 68,619 | 71,309 | 72,148 | 89,597 | 96,250 | 105,082.68 | 114,725.92 | 125,254.10 | 136,748.44 | 149,297.59 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 5,065 | 6,193 | 4,296 | 11,049 | 10,113 | 9,427.89 | 10,293.07 | 11,237.65 | 12,268.91 | 13,394.80 |
| Capital Expenditure | -1,123 | -1,174 | -1,484 | -1,791 | -1,853 | -1,946.96 | -2,125.63 | -2,320.70 | -2,533.66 | -2,766.17 |
| Free Cash Flow | 3,942 | 5,019 | 2,812 | 9,258 | 8,260 | 7,480.93 | 8,167.44 | 8,916.95 | 9,735.24 | 10,628.63 |
| WACC | ||||||||||
| PV LFCF | 4,751.09 | 4,809.09 | 4,867.80 | 4,927.23 | 4,987.39 | |||||
| SUM PV LFCF | 35,536.04 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.86 |
| Free cash flow (t + 1) | 10,841.20 |
| Terminal Value | 185,003.40 |
| Present Value of Terminal Value | 126,729.47 |
Intrinsic Value
| Enterprise Value | 162,265.51 |
|---|---|
| Net Debt | 28,251 |
| Equity Value | 134,014.51 |
| Shares Outstanding | 699 |
| Equity Value Per Share | 191.72 |