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	24,837	25,739	25,331	18,097	25,292	26,129.58	26,994.90	27,888.88	28,812.47	29,766.63
Revenue (%)
Operating Cash Flow	1,944	1,735	1,608	649	2,712	1,840.81	1,901.78	1,964.76	2,029.82	2,097.04
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	1,184	803	451	183	2,115	995.06	1,028.01	1,062.05	1,097.23	1,133.56

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	24,837	25,739	25,331	18,097	25,292	26,129.58	26,994.90	27,888.88	28,812.47	29,766.63
Operating Cash Flow	1,944	1,735	1,608	649	2,712	1,840.81	1,901.78	1,964.76	2,029.82	2,097.04
Capital Expenditure	-760	-932	-1,157	-466	-597	-845.76	-873.76	-902.70	-932.60	-963.48
Free Cash Flow	1,184	803	451	183	2,115	995.06	1,028.01	1,062.05	1,097.23	1,133.56
WACC
PV LFCF						925.20	888.74	853.72	820.08	787.76
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