Discounted Cash Flow (DCF) Analysis Levered
Sprouts Farmers Market, Inc. (SFM)
$33.91
+0.18 (+0.53%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 5,207.34 | 5,634.84 | 6,097.43 | 6,598 | 7,139.67 | 7,725.80 | 8,360.06 | 9,046.38 | 9,789.05 | 10,592.68 | 11,462.30 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||||
| Operating Cash Flow | 294.38 | 355.21 | 364.53 | 394.46 | 426.84 | 461.89 | 499.81 | 540.84 | 585.24 | 633.28 | 685.27 |
| Operating Cash Flow (%) | |||||||||||
| Capital Expenditure | -177.08 | -183.23 | -202.81 | -219.46 | -237.48 | -256.98 | -278.07 | -300.90 | -325.60 | -352.33 | -381.26 |
| Capital Expenditure (%) | |||||||||||
| Free Cash Flow | 117.30 | 171.98 | 161.72 | 175 | 189.36 | 204.91 | 221.73 | 239.94 | 259.63 | 280.95 | 304.01 |
Weighted Average Cost Of Capital
| Share price | $ 33.91 |
|---|---|
| Beta | 0.393 |
| 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 | 5.598 |
| Total Debt | 1,540.67 |
| Total Equity | 3,700.90 |
| Total Capital | 5,241.57 |
| Debt Weighting | 29.39 |
| Equity Weighting | 70.61 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 5,207.34 | 5,634.84 | 6,097.43 | 6,598 | 7,139.67 | 7,725.80 | 8,360.06 | 9,046.38 | 9,789.05 | 10,592.68 | 11,462.30 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 294.38 | 355.21 | 364.53 | 394.46 | 426.84 | 461.89 | 499.81 | 540.84 | 585.24 | 633.28 | 685.27 |
| Capital Expenditure | -177.08 | -183.23 | -202.81 | -219.46 | -237.48 | -256.98 | -278.07 | -300.90 | -325.60 | -352.33 | -381.26 |
| Free Cash Flow | 117.30 | 171.98 | 161.72 | 175 | 189.36 | 204.91 | 221.73 | 239.94 | 259.63 | 280.95 | 304.01 |
| WACC | |||||||||||
| PV LFCF | 168.32 | 175 | 181.94 | 189.16 | 196.66 | 204.47 | 212.58 | 221.02 | 229.78 | ||
| SUM PV LFCF | 1,153.15 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.08 |
| Free cash flow (t + 1) | 310.09 |
| Terminal Value | 14,908.30 |
| Present Value of Terminal Value | 12,206.52 |
Intrinsic Value
| Enterprise Value | 13,359.67 |
|---|---|
| Net Debt | 1,247.44 |
| Equity Value | 12,112.23 |
| Shares Outstanding | 109.14 |
| Equity Value Per Share | 110.98 |