Discounted Cash Flow (DCF) Analysis Levered
Target Corporation (TGT)
$150.42
+3.61 (+2.46%)
All numbers are in Millions, Currency in USD
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 | 72,714 | 75,356 | 78,112 | 93,561 | 106,005 | 116,703.33 | 128,481.36 | 141,448.07 | 155,723.41 | 171,439.46 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 6,923 | 5,973 | 7,117 | 10,525 | 8,625 | 10,723.70 | 11,805.96 | 12,997.46 | 14,309.20 | 15,753.32 |
| 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 | 4,390 | 2,457 | 4,090 | 7,876 | 5,081 | 6,475.90 | 7,129.47 | 7,849 | 8,641.14 | 9,513.23 |
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 | 72,714 | 75,356 | 78,112 | 93,561 | 106,005 | 116,703.33 | 128,481.36 | 141,448.07 | 155,723.41 | 171,439.46 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 6,923 | 5,973 | 7,117 | 10,525 | 8,625 | 10,723.70 | 11,805.96 | 12,997.46 | 14,309.20 | 15,753.32 |
| 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 | 4,390 | 2,457 | 4,090 | 7,876 | 5,081 | 6,475.90 | 7,129.47 | 7,849 | 8,641.14 | 9,513.23 |
| WACC | ||||||||||
| PV LFCF | 4,689.09 | 4,839.53 | 4,994.80 | 5,155.05 | 5,320.44 | |||||
| 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 |