Discounted Cash Flow (DCF) Analysis Levered

The TJX Companies, Inc. (TJX)

$80.59

+1.02 (+1.29%)
All numbers are in Millions, Currency in USD
Stock DCF: 82.19 | 80.59 | 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 35,864.6638,972.9341,716.9832,136.9648,549.9853,868.0759,768.6966,315.6573,579.7681,639.57
Revenue (%)
Operating Cash Flow 3,025.624,088.464,066.544,561.893,057.495,297.115,877.346,521.147,235.458,028.01
Operating Cash Flow (%)
Capital Expenditure -1,057.62-1,125.14-1,223.12-568.02-1,044.79-1,366.88-1,516.61-1,682.74-1,867.06-2,071.57
Capital Expenditure (%)
Free Cash Flow 1,968.012,963.322,843.423,993.872,012.693,930.224,360.734,838.405,368.395,956.44

Weighted Average Cost Of Capital

Share price $ 80.59
Beta 0.885
Diluted Shares Outstanding 1,215.59
Cost of Debt
Tax Rate 25.35
After-tax Cost of Debt 0.72%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.815
Total Debt 12,506.99
Total Equity 97,964.48
Total Capital 110,471.47
Debt Weighting 11.32
Equity Weighting 88.68
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 35,864.6638,972.9341,716.9832,136.9648,549.9853,868.0759,768.6966,315.6573,579.7681,639.57
Operating Cash Flow 3,025.624,088.464,066.544,561.893,057.495,297.115,877.346,521.147,235.458,028.01
Capital Expenditure -1,057.62-1,125.14-1,223.12-568.02-1,044.79-1,366.88-1,516.61-1,682.74-1,867.06-2,071.57
Free Cash Flow 1,968.012,963.322,843.423,993.872,012.693,930.224,360.734,838.405,368.395,956.44
WACC
PV LFCF 3,672.763,808.123,948.474,093.994,244.87
SUM PV LFCF 19,768.22

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.01
Free cash flow (t + 1) 6,075.57
Terminal Value 121,268.79
Present Value of Terminal Value 86,422.58

Intrinsic Value

Enterprise Value 106,190.80
Net Debt 6,280.23
Equity Value 99,910.57
Shares Outstanding 1,215.59
Equity Value Per Share 82.19