Discounted Cash Flow (DCF) Analysis Levered
Target Corporation (TGT)
$112.6
-4.72 (-4.02%)
All numbers are in Millions, Currency in USD
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 | 75,356 | 78,112 | 93,561 | 106,005 | 109,120 | 119,943.14 | 131,839.78 | 144,916.40 | 159,290.04 | 175,089.33 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 5,973 | 7,117 | 10,525 | 8,625 | 4,018 | 9,620.78 | 10,575.02 | 11,623.92 | 12,776.84 | 14,044.12 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -3,516 | -3,027 | -2,649 | -3,544 | -5,528 | -4,745.33 | -5,216 | -5,733.35 | -6,302.02 | -6,927.09 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 2,457 | 4,090 | 7,876 | 5,081 | -1,510 | 4,875.45 | 5,359.02 | 5,890.56 | 6,474.82 | 7,117.03 |
Weighted Average Cost Of Capital
| Share price | $ 112.6 |
|---|---|
| Beta | 1.010 |
| Diluted Shares Outstanding | 464.70 |
| Cost of Debt | |
| Tax Rate | 18.67 |
| After-tax Cost of Debt | 2.07% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.207 |
| Total Debt | 18,777 |
| Total Equity | 52,325.22 |
| Total Capital | 71,102.22 |
| Debt Weighting | 26.41 |
| Equity Weighting | 73.59 |
| 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 | 75,356 | 78,112 | 93,561 | 106,005 | 109,120 | 119,943.14 | 131,839.78 | 144,916.40 | 159,290.04 | 175,089.33 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 5,973 | 7,117 | 10,525 | 8,625 | 4,018 | 9,620.78 | 10,575.02 | 11,623.92 | 12,776.84 | 14,044.12 |
| Capital Expenditure | -3,516 | -3,027 | -2,649 | -3,544 | -5,528 | -4,745.33 | -5,216 | -5,733.35 | -6,302.02 | -6,927.09 |
| Free Cash Flow | 2,457 | 4,090 | 7,876 | 5,081 | -1,510 | 4,875.45 | 5,359.02 | 5,890.56 | 6,474.82 | 7,117.03 |
| WACC | ||||||||||
| PV LFCF | 4,542.91 | 4,652.91 | 4,765.57 | 4,880.96 | 4,999.14 | |||||
| SUM PV LFCF | 23,841.49 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.32 |
| Free cash flow (t + 1) | 7,259.37 |
| Terminal Value | 136,454.39 |
| Present Value of Terminal Value | 95,848.25 |
Intrinsic Value
| Enterprise Value | 119,689.74 |
|---|---|
| Net Debt | 16,548 |
| Equity Value | 103,141.74 |
| Shares Outstanding | 464.70 |
| Equity Value Per Share | 221.95 |