Discounted Cash Flow (DCF) Analysis Levered

Signet Jewelers Limited (SIG)

$104.01

-3.47 (-3.23%)
All numbers are in Millions, Currency in USD
Stock DCF: 201.41 | 104.01 | undervalue

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 6,247.106,137.105,226.907,8267,842.108,495.729,203.839,970.9510,802.0111,702.34
Revenue (%)
Operating Cash Flow 697.70555.701,372.301,257.30797.901,235.581,338.571,450.131,5711,701.94
Operating Cash Flow (%)
Capital Expenditure -133.50-136.30-83-129.60-138.90-159.26-172.54-186.92-202.50-219.37
Capital Expenditure (%)
Free Cash Flow 564.20419.401,289.301,127.706591,076.321,166.031,263.221,368.501,482.57

Weighted Average Cost Of Capital

Share price $ 104.01
Beta 2.182
Diluted Shares Outstanding 56.70
Cost of Debt
Tax Rate 16.51
After-tax Cost of Debt 3.59%
Risk-Free Rate
Market Risk Premium
Cost of Equity 14.602
Total Debt 1,330.30
Total Equity 5,897.37
Total Capital 7,227.67
Debt Weighting 18.41
Equity Weighting 81.59
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 6,247.106,137.105,226.907,8267,842.108,495.729,203.839,970.9510,802.0111,702.34
Operating Cash Flow 697.70555.701,372.301,257.30797.901,235.581,338.571,450.131,5711,701.94
Capital Expenditure -133.50-136.30-83-129.60-138.90-159.26-172.54-186.92-202.50-219.37
Free Cash Flow 564.20419.401,289.301,127.706591,076.321,166.031,263.221,368.501,482.57
WACC
PV LFCF 956.05920885.31851.92819.80
SUM PV LFCF 4,433.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.58
Free cash flow (t + 1) 1,497.39
Terminal Value 12,930.85
Present Value of Terminal Value 7,150.24

Intrinsic Value

Enterprise Value 11,583.32
Net Debt 163.50
Equity Value 11,419.82
Shares Outstanding 56.70
Equity Value Per Share 201.41