Discounted Cash Flow (DCF) Analysis Levered

Tapestry, Inc. (TPR)

$34.34

+0.94 (+2.81%)
All numbers are in Millions, Currency in USD
Stock DCF: 52.91 | 34.34 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 4,488.305,8806,027.104,961.405,746.306,200.946,691.547,220.977,792.288,408.79
Revenue (%)
Operating Cash Flow 853.80996.70791.704071,323.70996.471,075.311,160.381,252.191,351.26
Operating Cash Flow (%)
Capital Expenditure -283.10-267.40-274.20-205.40-116-267.42-288.58-311.41-336.05-362.64
Capital Expenditure (%)
Free Cash Flow 570.70729.30517.50201.601,207.70729.04786.72848.97916.14988.62

Weighted Average Cost Of Capital

Share price $ 34.34
Beta 1.406
Diluted Shares Outstanding 283
Cost of Debt
Tax Rate 7.03
After-tax Cost of Debt 1.93%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.378
Total Debt 3,436
Total Equity 9,718.22
Total Capital 13,154.22
Debt Weighting 26.12
Equity Weighting 73.88
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 4,488.305,8806,027.104,961.405,746.306,200.946,691.547,220.977,792.288,408.79
Operating Cash Flow 853.80996.70791.704071,323.70996.471,075.311,160.381,252.191,351.26
Capital Expenditure -283.10-267.40-274.20-205.40-116-267.42-288.58-311.41-336.05-362.64
Free Cash Flow 570.70729.30517.50201.601,207.70729.04786.72848.97916.14988.62
WACC
PV LFCF 547.33549.79552.25554.73557.22
SUM PV LFCF 3,423.68

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.43
Free cash flow (t + 1) 1,008.39
Terminal Value 18,570.77
Present Value of Terminal Value 12,977.83

Intrinsic Value

Enterprise Value 16,401.51
Net Debt 1,428.30
Equity Value 14,973.21
Shares Outstanding 283
Equity Value Per Share 52.91