Discounted Cash Flow (DCF) Analysis Unlevered

Abercrombie & Fitch Co. (ANF)

$31.8

+1.49 (+4.92%)
All numbers are in Millions, Currency in USD
Stock DCF: 44.47 | 31.8 | undervalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 3,590.113,623.073,125.383,712.773,697.753,749.253,801.473,854.423,908.103,962.53
Revenue (%)
EBITDA 312.92250.26144.20483.91217.32293.55297.64301.79305.99310.25
EBITDA (%)
EBIT 134.8976.64-22.08339.8885.08124.63126.37128.13129.91131.72
EBIT (%)
Depreciation 178.03173.63166.28144.04132.24168.92171.27173.66176.08178.53
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 723.14671.271,104.86823.14517.60826.26837.76849.43861.26873.26
Total Cash (%)
Account Receivables 73.1180.2583.8669.10104.5187.1588.3689.5990.8492.10
Account Receivables (%)
Inventories 437.88434.33404.05525.86505.62487.03493.81500.69507.66514.73
Inventories (%)
Accounts Payable 226.88219.92289.40374.83258.90290.54294.58298.69302.85307.07
Accounts Payable (%)
Capital Expenditure -152.39-202.78-101.91-96.98-164.57-151.21-153.31-155.45-157.61-159.81
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 31.8
Beta 1.470
Diluted Shares Outstanding 52.33
Cost of Debt
Tax Rate 95.80
After-tax Cost of Debt 0.09%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.628
Total Debt 1,224.19
Total Equity 1,664
Total Capital 2,888.19
Debt Weighting 42.39
Equity Weighting 57.61
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 3,590.113,623.073,125.383,712.773,697.753,749.253,801.473,854.423,908.103,962.53
EBITDA 312.92250.26144.20483.91217.32293.55297.64301.79305.99310.25
EBIT 134.8976.64-22.08339.8885.08124.63126.37128.13129.91131.72
Tax Rate 35.94%36.86%-133.92%14.88%95.80%9.91%9.91%9.91%9.91%9.91%
EBIAT 86.4048.39-51.66289.313.58112.28113.84115.43117.04118.67
Depreciation 178.03173.63166.28144.04132.24168.92171.27173.66176.08178.53
Accounts Receivable --7.14-3.6114.75-35.4017.36-1.21-1.23-1.25-1.27
Inventories -3.5530.27-121.8120.2418.59-6.78-6.88-6.97-7.07
Accounts Payable --6.9669.4885.43-115.9331.644.054.104.164.22
Capital Expenditure -152.39-202.78-101.91-96.98-164.57-151.21-153.31-155.45-157.61-159.81
UFCF 112.048.69108.86314.75-159.84197.59127.85129.63131.44133.27
WACC
PV UFCF 186.12113.45108.35103.4998.84
SUM PV UFCF 610.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.16
Free cash flow (t + 1) 135.94
Terminal Value 3,267.69
Present Value of Terminal Value 2,423.47

Intrinsic Value

Enterprise Value 3,033.71
Net Debt 706.59
Equity Value 2,327.12
Shares Outstanding 52.33
Equity Value Per Share 44.47