Discounted Cash Flow (DCF) Analysis Levered

RH (RH)

$264.88

+0.47 (+0.18%)
All numbers are in Millions, Currency in USD
Stock DCF: 272.17 | 264.88 | 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 2,440.172,505.652,647.442,848.633,758.824,208.884,712.825,277.105,908.956,616.45
Revenue (%)
Operating Cash Flow 555.10300.56339.19500.77662.11696.57779.97873.36977.931,095.02
Operating Cash Flow (%)
Capital Expenditure -112.49-136.74-93.62-111.13-185.38-188.87-211.48-236.80-265.15-296.90
Capital Expenditure (%)
Free Cash Flow 442.61163.82245.56389.64476.73507.70568.49636.56712.78798.12

Weighted Average Cost Of Capital

Share price $ 264.88
Beta 2.165
Diluted Shares Outstanding 27.30
Cost of Debt
Tax Rate 17.07
After-tax Cost of Debt 1.55%
Risk-Free Rate
Market Risk Premium
Cost of Equity 14.045
Total Debt 3,434.82
Total Equity 7,231.82
Total Capital 10,666.64
Debt Weighting 32.20
Equity Weighting 67.80
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 2,440.172,505.652,647.442,848.633,758.824,208.884,712.825,277.105,908.956,616.45
Operating Cash Flow 555.10300.56339.19500.77662.11696.57779.97873.36977.931,095.02
Capital Expenditure -112.49-136.74-93.62-111.13-185.38-188.87-211.48-236.80-265.15-296.90
Free Cash Flow 442.61163.82245.56389.64476.73507.70568.49636.56712.78798.12
WACC
PV LFCF 461.46469.66478486.48495.12
SUM PV LFCF 2,390.72

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.02
Free cash flow (t + 1) 814.08
Terminal Value 10,150.64
Present Value of Terminal Value 6,297.02

Intrinsic Value

Enterprise Value 8,687.74
Net Debt 1,256.93
Equity Value 7,430.81
Shares Outstanding 27.30
Equity Value Per Share 272.17