Discounted Cash Flow (DCF) Analysis Levered

Macy's, Inc. (M)

$23.46

+0.28 (+1.21%)
All numbers are in Millions, Currency in USD
Stock DCF: 43.44 | 23.46 | undervalue

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 24,83725,73925,33118,09725,29226,129.5826,994.9027,888.8828,812.4729,766.63
Revenue (%)
Operating Cash Flow 1,9441,7351,6086492,7121,840.811,901.781,964.762,029.822,097.04
Operating Cash Flow (%)
Capital Expenditure -760-932-1,157-466-597-845.76-873.76-902.70-932.60-963.48
Capital Expenditure (%)
Free Cash Flow 1,1848034511832,115995.061,028.011,062.051,097.231,133.56

Weighted Average Cost Of Capital

Share price $ 23.46
Beta 1.769
Diluted Shares Outstanding 314
Cost of Debt
Tax Rate 23.37
After-tax Cost of Debt 2.90%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.855
Total Debt 6,826
Total Equity 7,366.44
Total Capital 14,192.44
Debt Weighting 48.10
Equity Weighting 51.90
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 24,83725,73925,33118,09725,29226,129.5826,994.9027,888.8828,812.4729,766.63
Operating Cash Flow 1,9441,7351,6086492,7121,840.811,901.781,964.762,029.822,097.04
Capital Expenditure -760-932-1,157-466-597-845.76-873.76-902.70-932.60-963.48
Free Cash Flow 1,1848034511832,115995.061,028.011,062.051,097.231,133.56
WACC
PV LFCF 925.20888.74853.72820.08787.76
SUM PV LFCF 4,275.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.55
Free cash flow (t + 1) 1,156.23
Terminal Value 20,833.05
Present Value of Terminal Value 14,477.74

Intrinsic Value

Enterprise Value 18,753.24
Net Debt 5,114
Equity Value 13,639.24
Shares Outstanding 314
Equity Value Per Share 43.44