Discounted Cash Flow (DCF) Analysis Levered

Tapestry, Inc. (TPR)

$28.5

-0.33 (-1.14%)
All numbers are in Millions, Currency in USD
Stock DCF: 45.51 | 28.5 | 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 6,027.104,961.405,746.306,684.506,660.906,895.907,139.197,391.077,651.837,921.80
Revenue (%)
Operating Cash Flow 791.704071,323.70853.20975.20989.961,024.891,061.051,098.491,137.24
Operating Cash Flow (%)
Capital Expenditure -274.20-205.40-116-93.90-184.20-205.20-212.44-219.93-227.69-235.72
Capital Expenditure (%)
Free Cash Flow 517.50201.601,207.70759.30791784.77812.45841.12870.79901.52

Weighted Average Cost Of Capital

Share price $ 28.5
Beta 1.507
Diluted Shares Outstanding 241.30
Cost of Debt
Tax Rate 18.12
After-tax Cost of Debt 0.69%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.653
Total Debt 3,292
Total Equity 6,877.05
Total Capital 10,169.05
Debt Weighting 32.37
Equity Weighting 67.63
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 6,027.104,961.405,746.306,684.506,660.906,895.907,139.197,391.077,651.837,921.80
Operating Cash Flow 791.704071,323.70853.20975.20989.961,024.891,061.051,098.491,137.24
Capital Expenditure -274.20-205.40-116-93.90-184.20-205.20-212.44-219.93-227.69-235.72
Free Cash Flow 517.50201.601,207.70759.30791784.77812.45841.12870.79901.52
WACC
PV LFCF 725.96695.26665.86637.69610.72
SUM PV LFCF 3,335.50

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.10
Free cash flow (t + 1) 919.55
Terminal Value 15,074.53
Present Value of Terminal Value 10,212.10

Intrinsic Value

Enterprise Value 13,547.60
Net Debt 2,565.90
Equity Value 10,981.70
Shares Outstanding 241.30
Equity Value Per Share 45.51