Discounted Cash Flow (DCF) Analysis Unlevered
Best Buy Co., Inc. (BBY)
$83.99
+1.94 (+2.36%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 42,151 | 42,879 | 43,638 | 47,262 | 51,761 | 54,520.01 | 57,426.09 | 60,487.07 | 63,711.21 | 67,107.21 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
EBITDA | 2,576 | 2,731 | 2,869 | 3,268 | 3,922 | 3,657.94 | 3,852.92 | 4,058.29 | 4,274.61 | 4,502.46 |
EBITDA (%) | ||||||||||
EBIT | 1,893 | 1,961 | 2,057 | 2,429 | 3,053 | 2,705.92 | 2,850.15 | 3,002.07 | 3,162.09 | 3,330.64 |
EBIT (%) | ||||||||||
Depreciation | 683 | 770 | 812 | 839 | 869 | 952.02 | 1,002.77 | 1,056.22 | 1,112.52 | 1,171.82 |
Depreciation (%) |
Balance Sheet Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Total Cash | 3,133 | 1,980 | 2,229 | 5,494 | 2,936 | 3,756.99 | 3,957.25 | 4,168.18 | 4,390.36 | 4,624.38 |
---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | ||||||||||
Account Receivables | 1,049 | 1,015 | 1,149 | 1,061 | 1,042 | 1,280.88 | 1,349.15 | 1,421.07 | 1,496.81 | 1,576.60 |
Account Receivables (%) | ||||||||||
Inventories | 5,209 | 5,409 | 5,174 | 5,612 | 5,965 | 6,567.21 | 6,917.26 | 7,285.97 | 7,674.34 | 8,083.40 |
Inventories (%) | ||||||||||
Accounts Payable | 4,873 | 5,257 | 5,288 | 6,979 | 6,803 | 6,962.04 | 7,333.14 | 7,724.02 | 8,135.73 | 8,569.39 |
Accounts Payable (%) | ||||||||||
Capital Expenditure | -688 | -819 | -743 | -713 | -737 | -891.66 | -939.19 | -989.25 | -1,041.98 | -1,097.52 |
Capital Expenditure (%) |
Weighted Average Cost Of Capital
Share price | $ 83.99 |
---|---|
Beta | 1.429 |
Diluted Shares Outstanding | 249.30 |
Cost of Debt | |
Tax Rate | 18.85 |
After-tax Cost of Debt | 0.52% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 9.486 |
Total Debt | 3,888 |
Total Equity | 20,938.71 |
Total Capital | 24,826.71 |
Debt Weighting | 15.66 |
Equity Weighting | 84.34 |
Wacc |
Build Up Free Cash
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 42,151 | 42,879 | 43,638 | 47,262 | 51,761 | 54,520.01 | 57,426.09 | 60,487.07 | 63,711.21 | 67,107.21 |
---|---|---|---|---|---|---|---|---|---|---|
EBITDA | 2,576 | 2,731 | 2,869 | 3,268 | 3,922 | 3,657.94 | 3,852.92 | 4,058.29 | 4,274.61 | 4,502.46 |
EBIT | 1,893 | 1,961 | 2,057 | 2,429 | 3,053 | 2,705.92 | 2,850.15 | 3,002.07 | 3,162.09 | 3,330.64 |
Tax Rate | 44.96% | 22.46% | 22.68% | 24.36% | 18.85% | 26.66% | 26.66% | 26.66% | 26.66% | 26.66% |
EBIAT | 1,041.83 | 1,520.61 | 1,590.49 | 1,837.33 | 2,477.53 | 1,984.47 | 2,090.25 | 2,201.67 | 2,319.02 | 2,442.63 |
Depreciation | 683 | 770 | 812 | 839 | 869 | 952.02 | 1,002.77 | 1,056.22 | 1,112.52 | 1,171.82 |
Accounts Receivable | - | 34 | -134 | 88 | 19 | -238.88 | -68.27 | -71.91 | -75.75 | -79.78 |
Inventories | - | -200 | 235 | -438 | -353 | -602.21 | -350.05 | -368.71 | -388.36 | -409.06 |
Accounts Payable | - | 384 | 31 | 1,691 | -176 | 159.04 | 371.10 | 390.88 | 411.71 | 433.66 |
Capital Expenditure | -688 | -819 | -743 | -713 | -737 | -891.66 | -939.19 | -989.25 | -1,041.98 | -1,097.52 |
UFCF | 1,036.83 | 1,689.61 | 1,791.49 | 3,304.33 | 2,099.53 | 1,362.79 | 2,106.60 | 2,218.89 | 2,337.16 | 2,461.74 |
WACC | ||||||||||
PV UFCF | 1,260.91 | 1,803.40 | 1,757.52 | 1,712.80 | 1,669.23 | |||||
SUM PV UFCF | 8,203.86 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 8.08 |
Free cash flow (t + 1) | 2,510.98 |
Terminal Value | 41,298.96 |
Present Value of Terminal Value | 28,003.51 |
Intrinsic Value
Enterprise Value | 36,207.37 |
---|---|
Net Debt | 952 |
Equity Value | 35,255.37 |
Shares Outstanding | 249.30 |
Equity Value Per Share | 141.42 |