Discounted Cash Flow (DCF) Analysis Levered

Ross Stores, Inc. (ROST)

$89.82

+0.44 (+0.49%)
All numbers are in Millions, Currency in USD
Stock DCF: 154.49 | 89.82 | 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 14,134.7314,983.5416,039.0712,531.5718,916.2420,908.6023,110.7925,544.9428,235.4631,209.36
Revenue (%)
Operating Cash Flow 1,681.282,066.682,171.552,245.931,738.852,774.213,066.403,389.373,746.354,140.94
Operating Cash Flow (%)
Capital Expenditure -371.42-413.90-555.48-405.43-557.84-628.83-695.07-768.27-849.19-938.63
Capital Expenditure (%)
Free Cash Flow 1,309.861,652.781,616.061,840.501,181.012,145.372,371.332,621.102,897.163,202.31

Weighted Average Cost Of Capital

Share price $ 89.82
Beta 0.954
Diluted Shares Outstanding 353.73
Cost of Debt
Tax Rate 23.73
After-tax Cost of Debt 1.02%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.262
Total Debt 5,622.14
Total Equity 31,772.39
Total Capital 37,394.53
Debt Weighting 15.03
Equity Weighting 84.97
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 14,134.7314,983.5416,039.0712,531.5718,916.2420,908.6023,110.7925,544.9428,235.4631,209.36
Operating Cash Flow 1,681.282,066.682,171.552,245.931,738.852,774.213,066.403,389.373,746.354,140.94
Capital Expenditure -371.42-413.90-555.48-405.43-557.84-628.83-695.07-768.27-849.19-938.63
Free Cash Flow 1,309.861,652.781,616.061,840.501,181.012,145.372,371.332,621.102,897.163,202.31
WACC
PV LFCF 2,001.842,064.652,129.432,196.242,265.15
SUM PV LFCF 10,657.31

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.17
Free cash flow (t + 1) 3,266.35
Terminal Value 63,178.96
Present Value of Terminal Value 44,689.58

Intrinsic Value

Enterprise Value 55,346.89
Net Debt 699.77
Equity Value 54,647.12
Shares Outstanding 353.73
Equity Value Per Share 154.49