Discounted Cash Flow (DCF) Analysis Levered

Target Corporation (TGT)

$150.42

+3.61 (+2.46%)
All numbers are in Millions, Currency in USD
Stock DCF: 350.15 | 150.42 | 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 72,71475,35678,11293,561106,005116,703.33128,481.36141,448.07155,723.41171,439.46
Revenue (%)
Operating Cash Flow 6,9235,9737,11710,5258,62510,723.7011,805.9612,997.4614,309.2015,753.32
Operating Cash Flow (%)
Capital Expenditure -2,533-3,516-3,027-2,649-3,544-4,247.79-4,676.49-5,148.46-5,668.06-6,240.09
Capital Expenditure (%)
Free Cash Flow 4,3902,4574,0907,8765,0816,475.907,129.477,8498,641.149,513.23

Weighted Average Cost Of Capital

Share price $ 150.42
Beta 0.966
Diluted Shares Outstanding 492.70
Cost of Debt
Tax Rate 22.02
After-tax Cost of Debt 2.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.687
Total Debt 16,213
Total Equity 74,111.93
Total Capital 90,324.93
Debt Weighting 17.95
Equity Weighting 82.05
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 72,71475,35678,11293,561106,005116,703.33128,481.36141,448.07155,723.41171,439.46
Operating Cash Flow 6,9235,9737,11710,5258,62510,723.7011,805.9612,997.4614,309.2015,753.32
Capital Expenditure -2,533-3,516-3,027-2,649-3,544-4,247.79-4,676.49-5,148.46-5,668.06-6,240.09
Free Cash Flow 4,3902,4574,0907,8765,0816,475.907,129.477,8498,641.149,513.23
WACC
PV LFCF 4,689.094,839.534,994.805,155.055,320.44
SUM PV LFCF 32,366.09

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.67
Free cash flow (t + 1) 9,703.49
Terminal Value 207,783.59
Present Value of Terminal Value 150,452.62

Intrinsic Value

Enterprise Value 182,818.72
Net Debt 10,302
Equity Value 172,516.72
Shares Outstanding 492.70
Equity Value Per Share 350.15