Discounted Cash Flow (DCF) Analysis Levered

The Container Store Group, Inc. (TCS)

$5.14

-0.01 (-0.19%)

All numbers are in Millions, Currency in USD

Stock DCF: 33.17 | 5.14 | undervalue

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	857.23	895.09	915.95	990.09	1,094.12	1,163.46	1,237.19	1,315.59	1,398.96	1,487.61
Revenue (%)
Operating Cash Flow	62.18	54.90	30.75	138.29	56.99	83.58	88.88	94.51	100.50	106.87
Operating Cash Flow (%)
Capital Expenditure	-27.65	-33.67	-33.62	-17.18	-33.39	-35.94	-38.21	-40.63	-43.21	-45.95
Capital Expenditure (%)
Free Cash Flow	34.53	21.23	-2.87	121.11	23.60	47.64	50.66	53.87	57.29	60.92

Weighted Average Cost Of Capital

Share price	$ 5.14
Beta	1.348
Diluted Shares Outstanding	50.29
Cost of Debt
Tax Rate	27.49
After-tax Cost of Debt	1.74%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.328
Total Debt	532.34
Total Equity	258.51
Total Capital	790.85
Debt Weighting	67.31
Equity Weighting	32.69
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	857.23	895.09	915.95	990.09	1,094.12	1,163.46	1,237.19	1,315.59	1,398.96	1,487.61
Operating Cash Flow	62.18	54.90	30.75	138.29	56.99	83.58	88.88	94.51	100.50	106.87
Capital Expenditure	-27.65	-33.67	-33.62	-17.18	-33.39	-35.94	-38.21	-40.63	-43.21	-45.95
Free Cash Flow	34.53	21.23	-2.87	121.11	23.60	47.64	50.66	53.87	57.29	60.92
WACC
PV LFCF						45.57	46.35	47.14	47.95	48.77
SUM PV LFCF										235.78

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.55
Free cash flow (t + 1)	62.14
Terminal Value	2,436.76
Present Value of Terminal Value	1,950.71

Intrinsic Value

Enterprise Value	2,186.49
Net Debt	518.08
Equity Value	1,668.41
Shares Outstanding	50.29
Equity Value Per Share	33.17