Discounted Cash Flow (DCF) Analysis Levered

Tapestry, Inc. (TPR)

$42.48

-0.52 (-1.21%)

All numbers are in Millions, Currency in USD

Stock DCF: 38.94 | 42.48 | overvalue

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	5,880	6,027.10	4,961.40	5,746.30	6,684.50	6,968.04	7,263.61	7,571.71	7,892.89	8,227.69
Revenue (%)
Operating Cash Flow	996.70	791.70	407	1,323.70	853.20	1,032.51	1,076.31	1,121.96	1,169.56	1,219.17
Operating Cash Flow (%)
Capital Expenditure	-267.40	-274.20	-205.40	-116	-93.90	-232.18	-242.03	-252.30	-263	-274.15
Capital Expenditure (%)
Free Cash Flow	729.30	517.50	201.60	1,207.70	759.30	800.33	834.28	869.67	906.56	945.01

Weighted Average Cost Of Capital

Share price	$ 42.48
Beta	1.468
Diluted Shares Outstanding	270.10
Cost of Debt
Tax Rate	18.21
After-tax Cost of Debt	1.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.674
Total Debt	3,261.40
Total Equity	11,473.85
Total Capital	14,735.25
Debt Weighting	22.13
Equity Weighting	77.87
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	5,880	6,027.10	4,961.40	5,746.30	6,684.50	6,968.04	7,263.61	7,571.71	7,892.89	8,227.69
Operating Cash Flow	996.70	791.70	407	1,323.70	853.20	1,032.51	1,076.31	1,121.96	1,169.56	1,219.17
Capital Expenditure	-267.40	-274.20	-205.40	-116	-93.90	-232.18	-242.03	-252.30	-263	-274.15
Free Cash Flow	729.30	517.50	201.60	1,207.70	759.30	800.33	834.28	869.67	906.56	945.01
WACC
PV LFCF						736.68	706.86	678.24	650.78	624.44
SUM PV LFCF										3,397

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.64
Free cash flow (t + 1)	963.91
Terminal Value	14,516.75
Present Value of Terminal Value	9,592.25

Intrinsic Value

Enterprise Value	12,989.25
Net Debt	2,471.60
Equity Value	10,517.65
Shares Outstanding	270.10
Equity Value Per Share	38.94