Discounted Cash Flow (DCF) Analysis Levered

Rite Aid Corporation (RAD)

$3.46

-0.13 (-3.62%)
All numbers are in Millions, Currency in USD
Stock DCF: -173.05 | 3.46 | 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 21,528.9721,639.5621,928.3924,043.2424,568.2525,408.2726,27727,175.4428,104.5929,065.52
Revenue (%)
Operating Cash Flow 266.34-228.66487.0222.99379.27205.34212.36219.62227.13234.89
Operating Cash Flow (%)
Capital Expenditure -214.76-244.69-214.39-224.94-220.71-251.03-259.61-268.49-277.67-287.16
Capital Expenditure (%)
Free Cash Flow 51.58-473.35272.64-201.95158.56-45.69-47.25-48.87-50.54-52.27

Weighted Average Cost Of Capital

Share price $ 3.46
Beta 1.209
Diluted Shares Outstanding 54.05
Cost of Debt
Tax Rate 0.70
After-tax Cost of Debt 3.21%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.257
Total Debt 5,926.10
Total Equity 187.03
Total Capital 6,113.13
Debt Weighting 96.94
Equity Weighting 3.06
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 21,528.9721,639.5621,928.3924,043.2424,568.2525,408.2726,27727,175.4428,104.5929,065.52
Operating Cash Flow 266.34-228.66487.0222.99379.27205.34212.36219.62227.13234.89
Capital Expenditure -214.76-244.69-214.39-224.94-220.71-251.03-259.61-268.49-277.67-287.16
Free Cash Flow 51.58-473.35272.64-201.95158.56-45.69-47.25-48.87-50.54-52.27
WACC
PV LFCF -44.19-44.21-44.22-44.23-44.24
SUM PV LFCF -221.09

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.39
Free cash flow (t + 1) -53.31
Terminal Value -3,835.47
Present Value of Terminal Value -3,246.58

Intrinsic Value

Enterprise Value -3,467.66
Net Debt 5,886.38
Equity Value -9,354.04
Shares Outstanding 54.05
Equity Value Per Share -173.05