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
Stock DCF: 191.72 | 216.2 | overvalue

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 68,61971,30972,14889,59796,250105,082.68114,725.92125,254.10136,748.44149,297.59
Revenue (%)
Operating Cash Flow 5,0656,1934,29611,04910,1139,427.8910,293.0711,237.6512,268.9113,394.80
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 3,9425,0192,8129,2588,2607,480.938,167.448,916.959,735.2410,628.63

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 68,61971,30972,14889,59796,250105,082.68114,725.92125,254.10136,748.44149,297.59
Operating Cash Flow 5,0656,1934,29611,04910,1139,427.8910,293.0711,237.6512,268.9113,394.80
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 3,9425,0192,8129,2588,2607,480.938,167.448,916.959,735.2410,628.63
WACC
PV LFCF 4,751.094,809.094,867.804,927.234,987.39
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