Discounted Cash Flow (DCF) Analysis Levered
Target Corporation (TGT)
$219.25
-0.48 (-0.22%)
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 | $ 219.25 |
---|---|
Beta | 1.059 |
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 | 7.875 |
Total Debt | 16,213 |
Total Equity | 108,024.48 |
Total Capital | 124,237.48 |
Debt Weighting | 13.05 |
Equity Weighting | 86.95 |
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 | 6,046.03 | 6,214.37 | 6,387.40 | 6,565.25 | 6,748.04 | |||||
SUM PV LFCF | 31,961.09 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.11 |
Free cash flow (t + 1) | 9,703.49 |
Terminal Value | 189,892.24 |
Present Value of Terminal Value | 134,696.75 |
Intrinsic Value
Enterprise Value | 166,657.85 |
---|---|
Net Debt | 10,302 |
Equity Value | 156,355.85 |
Shares Outstanding | 492.70 |
Equity Value Per Share | 317.34 |