Discounted Cash Flow (DCF) Analysis Levered

Stitch Fix, Inc. (SFIX)

$4.71

+1.03 (+27.99%)

All numbers are in Millions, Currency in USD

Stock DCF: 4.23 | 4.71 | 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	1,226.51	1,577.56	1,711.73	2,101.26	2,072.81	2,376.12	2,723.80	3,122.36	3,579.24	4,102.97
Revenue (%)
Operating Cash Flow	72.18	78.59	42.88	-15.68	55.40	72.70	83.34	95.53	109.51	125.54
Operating Cash Flow (%)
Capital Expenditure	-16.57	-30.82	-30.21	-35.26	-46.35	-42.69	-48.94	-56.10	-64.31	-73.72
Capital Expenditure (%)
Free Cash Flow	55.61	47.77	12.67	-50.93	9.04	30.01	34.40	39.44	45.21	51.82

Weighted Average Cost Of Capital

Share price	$ 4.71
Beta	2.233
Diluted Shares Outstanding	108.76
Cost of Debt
Tax Rate	1.12
After-tax Cost of Debt	0.54%
Risk-Free Rate
Market Risk Premium
Cost of Equity	14.322
Total Debt	170.35
Total Equity	512.27
Total Capital	682.62
Debt Weighting	24.96
Equity Weighting	75.04
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	1,226.51	1,577.56	1,711.73	2,101.26	2,072.81	2,376.12	2,723.80	3,122.36	3,579.24	4,102.97
Operating Cash Flow	72.18	78.59	42.88	-15.68	55.40	72.70	83.34	95.53	109.51	125.54
Capital Expenditure	-16.57	-30.82	-30.21	-35.26	-46.35	-42.69	-48.94	-56.10	-64.31	-73.72
Free Cash Flow	55.61	47.77	12.67	-50.93	9.04	30.01	34.40	39.44	45.21	51.82
WACC
PV LFCF						27.07	27.98	28.93	29.91	30.92
SUM PV LFCF										144.80

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.88
Free cash flow (t + 1)	52.86
Terminal Value	595.23
Present Value of Terminal Value	355.16

Intrinsic Value

Enterprise Value	499.96
Net Debt	39.41
Equity Value	460.55
Shares Outstanding	108.76
Equity Value Per Share	4.23