Discounted Cash Flow (DCF) Analysis Levered

Sprouts Farmers Market, Inc. (SFM)

$24.42

-0.12 (-0.49%)
All numbers are in Millions, Currency in USD
Stock DCF: 188.07 | 24.42 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 4,664.615,207.345,634.846,193.946,808.517,484.078,226.669,042.939,940.1910,926.4812,010.63
Revenue (%)
Operating Cash Flow 309.57294.38355.21383.89421.98463.85509.87560.46616.08677.20744.40
Operating Cash Flow (%)
Capital Expenditure -198.62-177.08-183.23-225.26-247.61-272.18-299.19-328.88-361.51-397.38-436.81
Capital Expenditure (%)
Free Cash Flow 110.94117.30171.98158.63174.37191.67210.68231.59254.57279.83307.59

Weighted Average Cost Of Capital

Share price $ 24.42
Beta 0.341
Diluted Shares Outstanding 118.22
Cost of Debt
Tax Rate 24.27
After-tax Cost of Debt 0.56%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.578
Total Debt 1,508.40
Total Equity 2,887.03
Total Capital 4,395.43
Debt Weighting 34.32
Equity Weighting 65.68
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 4,664.615,207.345,634.846,193.946,808.517,484.078,226.669,042.939,940.1910,926.4812,010.63
Operating Cash Flow 309.57294.38355.21383.89421.98463.85509.87560.46616.08677.20744.40
Capital Expenditure -198.62-177.08-183.23-225.26-247.61-272.18-299.19-328.88-361.51-397.38-436.81
Free Cash Flow 110.94117.30171.98158.63174.37191.67210.68231.59254.57279.83307.59
WACC
PV LFCF 163.70174.37185.72197.82210.71224.43239.05254.62
SUM PV LFCF 1,162.68

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.20
Free cash flow (t + 1) 313.74
Terminal Value 26,145.20
Present Value of Terminal Value 22,335.39

Intrinsic Value

Enterprise Value 23,498.07
Net Debt 1,263.11
Equity Value 22,234.96
Shares Outstanding 118.22
Equity Value Per Share 188.07