Discounted Cash Flow (DCF) Analysis Levered

Target Corporation (TGT)

$112.6

-4.72 (-4.02%)
All numbers are in Millions, Currency in USD
Stock DCF: 221.95 | 112.6 | undervalue

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 75,35678,11293,561106,005109,120119,943.14131,839.78144,916.40159,290.04175,089.33
Revenue (%)
Operating Cash Flow 5,9737,11710,5258,6254,0189,620.7810,575.0211,623.9212,776.8414,044.12
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 2,4574,0907,8765,081-1,5104,875.455,359.025,890.566,474.827,117.03

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 75,35678,11293,561106,005109,120119,943.14131,839.78144,916.40159,290.04175,089.33
Operating Cash Flow 5,9737,11710,5258,6254,0189,620.7810,575.0211,623.9212,776.8414,044.12
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 2,4574,0907,8765,081-1,5104,875.455,359.025,890.566,474.827,117.03
WACC
PV LFCF 4,542.914,652.914,765.574,880.964,999.14
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