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	6,027.10	4,961.40	5,746.30	6,684.50	6,660.90	6,895.90	7,139.19	7,391.07	7,651.83	7,921.80
Revenue (%)
Operating Cash Flow	791.70	407	1,323.70	853.20	975.20	989.96	1,024.89	1,061.05	1,098.49	1,137.24
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	517.50	201.60	1,207.70	759.30	791	784.77	812.45	841.12	870.79	901.52

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	6,027.10	4,961.40	5,746.30	6,684.50	6,660.90	6,895.90	7,139.19	7,391.07	7,651.83	7,921.80
Operating Cash Flow	791.70	407	1,323.70	853.20	975.20	989.96	1,024.89	1,061.05	1,098.49	1,137.24
Capital Expenditure	-274.20	-205.40	-116	-93.90	-184.20	-205.20	-212.44	-219.93	-227.69	-235.72
Free Cash Flow	517.50	201.60	1,207.70	759.30	791	784.77	812.45	841.12	870.79	901.52
WACC
PV LFCF						725.96	695.26	665.86	637.69	610.72
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