Discounted Cash Flow (DCF) Analysis Levered

Skechers U.S.A., Inc. (SKX)

$45.03

+0.35 (+0.78%)

All numbers are in Millions, Currency in USD

Stock DCF: 17.17 | 45.03 | overvalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	4,164.16	4,642.07	5,220.05	4,597.41	6,285.03	7,050.35	7,908.87	8,871.93	9,952.26	11,164.14
Revenue (%)
Operating Cash Flow	159.34	568.55	426.55	331.45	212.15	491.14	550.94	618.03	693.29	777.71
Operating Cash Flow (%)
Capital Expenditure	-136.19	-143.04	-236.11	-309.92	-309.67	-317.88	-356.58	-400	-448.71	-503.35
Capital Expenditure (%)
Free Cash Flow	23.15	425.52	190.44	21.54	-97.52	173.26	194.36	218.03	244.58	274.36

Weighted Average Cost Of Capital

Share price	$ 45.03
Beta	1.280
Diluted Shares Outstanding	157.12
Cost of Debt
Tax Rate	-30.14
After-tax Cost of Debt	5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.661
Total Debt	1,662.01
Total Equity	7,075.25
Total Capital	8,737.26
Debt Weighting	19.02
Equity Weighting	80.98
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	4,164.16	4,642.07	5,220.05	4,597.41	6,285.03	7,050.35	7,908.87	8,871.93	9,952.26	11,164.14
Operating Cash Flow	159.34	568.55	426.55	331.45	212.15	491.14	550.94	618.03	693.29	777.71
Capital Expenditure	-136.19	-143.04	-236.11	-309.92	-309.67	-317.88	-356.58	-400	-448.71	-503.35
Free Cash Flow	23.15	425.52	190.44	21.54	-97.52	173.26	194.36	218.03	244.58	274.36
WACC
PV LFCF						104.63	107.91	111.29	114.77	118.37
SUM PV LFCF										847.94

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.77
Free cash flow (t + 1)	279.84
Terminal Value	4,133.60
Present Value of Terminal Value	2,715.08

Intrinsic Value

Enterprise Value	3,563.02
Net Debt	865.73
Equity Value	2,697.29
Shares Outstanding	157.12
Equity Value Per Share	17.17