Discounted Cash Flow (DCF) Analysis Unlevered

Abercrombie & Fitch Co. (ANF)

$25.31

-0.52 (-2.01%)

All numbers are in Millions, Currency in USD

Stock DCF: 31.29 | 25.31 | 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	3,590.11	3,623.07	3,125.38	3,712.77	3,697.75	3,749.25	3,801.47	3,854.42	3,908.10	3,962.53
Revenue (%)
EBITDA	312.92	250.26	144.20	483.91	85.08	266.74	270.45	274.22	278.04	281.91
EBITDA (%)
EBIT	134.89	76.64	-22.08	339.88	-90.11	89.11	90.35	91.61	92.88	94.18
EBIT (%)
Depreciation	178.03	173.63	166.28	144.04	175.19	177.63	180.10	182.61	185.15	187.73
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	723.14	671.27	1,104.86	823.14	517.60	826.26	837.76	849.43	861.26	873.26
Total Cash (%)
Account Receivables	73.11	80.25	83.86	69.10	104.51	87.15	88.36	89.59	90.84	92.10
Account Receivables (%)
Inventories	437.88	434.33	404.05	525.86	505.62	487.03	493.81	500.69	507.66	514.73
Inventories (%)
Accounts Payable	226.88	219.92	289.40	374.83	258.90	290.54	294.58	298.69	302.85	307.07
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	$ 25.31
Beta	1.449
Diluted Shares Outstanding	62.64
Cost of Debt
Tax Rate	95.80
After-tax Cost of Debt	0.09%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.339
Total Debt	1,224.19
Total Equity	1,585.32
Total Capital	2,809.51
Debt Weighting	43.57
Equity Weighting	56.43
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	3,590.11	3,623.07	3,125.38	3,712.77	3,697.75	3,749.25	3,801.47	3,854.42	3,908.10	3,962.53
EBITDA	312.92	250.26	144.20	483.91	85.08	266.74	270.45	274.22	278.04	281.91
EBIT	134.89	76.64	-22.08	339.88	-90.11	89.11	90.35	91.61	92.88	94.18
Tax Rate	35.94%	36.86%	-133.92%	14.88%	95.80%	9.91%	9.91%	9.91%	9.91%	9.91%
EBIAT	86.40	48.39	-51.66	289.31	-3.79	80.28	81.39	82.53	83.68	84.84
Depreciation	178.03	173.63	166.28	144.04	175.19	177.63	180.10	182.61	185.15	187.73
Accounts Receivable	-	-7.14	-3.61	14.75	-35.40	17.36	-1.21	-1.23	-1.25	-1.27
Inventories	-	3.55	30.27	-121.81	20.24	18.59	-6.78	-6.88	-6.97	-7.07
Accounts Payable	-	-6.96	69.48	85.43	-115.93	31.64	4.05	4.10	4.16	4.22
Capital Expenditure	-152.39	-202.78	-101.91	-96.98	-164.57	-151.21	-153.31	-155.45	-157.61	-159.81
UFCF	112.04	8.69	108.86	314.75	-124.26	174.29	104.23	105.68	107.16	108.65
WACC
PV UFCF						164.63	93	89.06	85.30	81.69
SUM PV UFCF										513.67

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.87
Free cash flow (t + 1)	110.82
Terminal Value	2,863.62
Present Value of Terminal Value	2,153.03

Intrinsic Value

Enterprise Value	2,666.70
Net Debt	706.59
Equity Value	1,960.11
Shares Outstanding	62.64
Equity Value Per Share	31.29