Discounted Cash Flow (DCF) Analysis Levered
Tractor Supply Company (TSCO)
$222.79
-2.88 (-1.28%)
All numbers are in Millions, Currency in USD
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 | 7,256.38 | 7,911.05 | 8,351.93 | 10,620.35 | 12,731.11 | 14,692.65 | 16,956.42 | 19,568.98 | 22,584.07 | 26,063.71 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 631.45 | 694.39 | 811.72 | 1,394.51 | 1,138.72 | 1,447.91 | 1,671 | 1,928.46 | 2,225.59 | 2,568.50 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -250.40 | -278.53 | -217.45 | -294 | -628.43 | -507.77 | -586 | -676.29 | -780.49 | -900.74 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 381.05 | 415.86 | 594.27 | 1,100.51 | 510.29 | 940.15 | 1,085 | 1,252.17 | 1,445.10 | 1,667.75 |
Weighted Average Cost Of Capital
| Share price | $ 222.79 |
|---|---|
| Beta | 0.885 |
| Diluted Shares Outstanding | 115.82 |
| Cost of Debt | |
| Tax Rate | 22.11 |
| After-tax Cost of Debt | 0.53% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.729 |
| Total Debt | 3,919.31 |
| Total Equity | 25,804.43 |
| Total Capital | 29,723.74 |
| Debt Weighting | 13.19 |
| Equity Weighting | 86.81 |
| 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 | 7,256.38 | 7,911.05 | 8,351.93 | 10,620.35 | 12,731.11 | 14,692.65 | 16,956.42 | 19,568.98 | 22,584.07 | 26,063.71 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 631.45 | 694.39 | 811.72 | 1,394.51 | 1,138.72 | 1,447.91 | 1,671 | 1,928.46 | 2,225.59 | 2,568.50 |
| Capital Expenditure | -250.40 | -278.53 | -217.45 | -294 | -628.43 | -507.77 | -586 | -676.29 | -780.49 | -900.74 |
| Free Cash Flow | 381.05 | 415.86 | 594.27 | 1,100.51 | 510.29 | 940.15 | 1,085 | 1,252.17 | 1,445.10 | 1,667.75 |
| WACC | ||||||||||
| PV LFCF | 880.45 | 951.59 | 1,028.48 | 1,111.57 | 1,201.39 | |||||
| SUM PV LFCF | 5,173.48 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.78 |
| Free cash flow (t + 1) | 1,701.11 |
| Terminal Value | 35,588.06 |
| Present Value of Terminal Value | 25,636.26 |
Intrinsic Value
| Enterprise Value | 30,809.74 |
|---|---|
| Net Debt | 3,041.28 |
| Equity Value | 27,768.46 |
| Shares Outstanding | 115.82 |
| Equity Value Per Share | 239.75 |