Discounted Cash Flow (DCF) Analysis Levered

Stitch Fix, Inc. (SFIX)

$3.12

-0.01 (-0.32%)

All numbers are in Millions, Currency in USD

Stock DCF: 1.96 | 3.12 | overvalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	1,577.56	1,711.73	2,101.26	2,072.81	1,638.42	1,675.09	1,712.57	1,750.90	1,790.08	1,830.14
Revenue (%)
Operating Cash Flow	78.59	42.88	-15.68	55.40	57.83	43.36	44.33	45.32	46.34	47.37
Operating Cash Flow (%)
Capital Expenditure	-30.82	-30.21	-35.26	-46.35	-19.01	-29.46	-30.12	-30.79	-31.48	-32.18
Capital Expenditure (%)
Free Cash Flow	47.77	12.67	-50.93	9.04	38.82	13.90	14.21	14.53	14.86	15.19

Weighted Average Cost Of Capital

Share price	$ 3.12
Beta	2.244
Diluted Shares Outstanding	114.68
Cost of Debt
Tax Rate	-0.87
After-tax Cost of Debt	5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity	15.029
Total Debt	154.76
Total Equity	357.82
Total Capital	512.58
Debt Weighting	30.19
Equity Weighting	69.81
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	1,577.56	1,711.73	2,101.26	2,072.81	1,638.42	1,675.09	1,712.57	1,750.90	1,790.08	1,830.14
Operating Cash Flow	78.59	42.88	-15.68	55.40	57.83	43.36	44.33	45.32	46.34	47.37
Capital Expenditure	-30.82	-30.21	-35.26	-46.35	-19.01	-29.46	-30.12	-30.79	-31.48	-32.18
Free Cash Flow	47.77	12.67	-50.93	9.04	38.82	13.90	14.21	14.53	14.86	15.19
WACC
PV LFCF						12.41	11.33	10.34	9.44	8.62
SUM PV LFCF										52.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	12.00
Free cash flow (t + 1)	15.49
Terminal Value	154.94
Present Value of Terminal Value	87.92

Intrinsic Value

Enterprise Value	140.07
Net Debt	-84.68
Equity Value	224.74
Shares Outstanding	114.68
Equity Value Per Share	1.96