Discounted Cash Flow (DCF) Analysis Levered
Sprouts Farmers Market, Inc. (SFM)
$42.16
+0.78 (+1.89%)
All numbers are in Millions, Currency in USD
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 | 5,207.34 | 5,634.84 | 6,468.76 | 6,099.87 | 6,404.22 | 6,761.19 | 7,138.06 | 7,535.93 | 7,955.98 | 8,399.45 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 294.38 | 355.21 | 494.03 | 364.80 | 371.33 | 424.24 | 447.88 | 472.85 | 499.20 | 527.03 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -177.08 | -183.23 | -121.97 | -102.38 | -124.01 | -164.33 | -173.49 | -183.16 | -193.37 | -204.15 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 117.30 | 171.98 | 372.07 | 262.42 | 247.32 | 259.90 | 274.39 | 289.68 | 305.83 | 322.88 |
Weighted Average Cost Of Capital
| Share price | $ 42.16 |
|---|---|
| Beta | 0.395 |
| Diluted Shares Outstanding | 109.14 |
| Cost of Debt | |
| Tax Rate | 25.23 |
| After-tax Cost of Debt | 0.44% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.407 |
| Total Debt | 1,540.67 |
| Total Equity | 4,601.30 |
| Total Capital | 6,141.97 |
| Debt Weighting | 25.08 |
| Equity Weighting | 74.92 |
| 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 | 5,207.34 | 5,634.84 | 6,468.76 | 6,099.87 | 6,404.22 | 6,761.19 | 7,138.06 | 7,535.93 | 7,955.98 | 8,399.45 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 294.38 | 355.21 | 494.03 | 364.80 | 371.33 | 424.24 | 447.88 | 472.85 | 499.20 | 527.03 |
| Capital Expenditure | -177.08 | -183.23 | -121.97 | -102.38 | -124.01 | -164.33 | -173.49 | -183.16 | -193.37 | -204.15 |
| Free Cash Flow | 117.30 | 171.98 | 372.07 | 262.42 | 247.32 | 259.90 | 274.39 | 289.68 | 305.83 | 322.88 |
| WACC | ||||||||||
| PV LFCF | 247.74 | 249.31 | 250.88 | 252.47 | 254.07 | |||||
| SUM PV LFCF | 1,254.47 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.91 |
| Free cash flow (t + 1) | 329.34 |
| Terminal Value | 11,317.38 |
| Present Value of Terminal Value | 8,905.56 |
Intrinsic Value
| Enterprise Value | 10,160.04 |
|---|---|
| Net Debt | 1,247.44 |
| Equity Value | 8,912.60 |
| Shares Outstanding | 109.14 |
| Equity Value Per Share | 81.66 |