Discounted Cash Flow (DCF) Analysis Unlevered

The Cato Corporation (CATO)

$9.51

-0.09 (-0.94%)
All numbers are in Millions, Currency in USD
Stock DCF: 8.88 | 9.51 | overvalue

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 849.98829.66825.34575.11769.27770.29771.31772.34773.36774.39
Revenue (%)
EBITDA 23.4350.1158.72-57.9451.3919.2819.3119.3419.3619.39
EBITDA (%)
EBIT 3.7933.6543.24-72.6239.043.373.373.383.383.39
EBIT (%)
Depreciation 19.6416.4615.4914.6812.3615.9115.9415.9615.9816
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 196.88207.31212.21143.93165.76185.54185.79186.03186.28186.53
Total Cash (%)
Account Receivables 28.0228.1426.0952.7455.8140.4840.5340.5940.6440.69
Account Receivables (%)
Inventories 121.54119.58115.3684.12124.91113.32113.47113.62113.77113.92
Inventories (%)
Accounts Payable 82.6184.2868.4473.77109.5585.1085.2185.3285.4485.55
Accounts Payable (%)
Capital Expenditure -11.10-4.35-8.31-13.96-4.10-8.93-8.94-8.95-8.97-8.98
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 9.51
Beta 0.921
Diluted Shares Outstanding 22.54
Cost of Debt
Tax Rate 5.44
After-tax Cost of Debt 0.04%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.237
Total Debt 184.33
Total Equity 214.32
Total Capital 398.65
Debt Weighting 46.24
Equity Weighting 53.76
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 849.98829.66825.34575.11769.27770.29771.31772.34773.36774.39
EBITDA 23.4350.1158.72-57.9451.3919.2819.3119.3419.3619.39
EBIT 3.7933.6543.24-72.6239.043.373.373.383.383.39
Tax Rate 46.53%7.84%16.92%34.78%5.44%22.30%22.30%22.30%22.30%22.30%
EBIAT 2.0231.0135.92-47.3636.912.622.622.632.632.63
Depreciation 19.6416.4615.4914.6812.3615.9115.9415.9615.9816
Accounts Receivable --0.122.05-26.66-3.0715.33-0.05-0.05-0.05-0.05
Inventories -1.954.2231.24-40.7811.59-0.15-0.15-0.15-0.15
Accounts Payable -1.68-15.845.3335.78-24.450.110.110.110.11
Capital Expenditure -11.10-4.35-8.31-13.96-4.11-8.93-8.94-8.95-8.97-8.98
UFCF 10.5746.6333.53-36.7237.0912.089.529.549.559.56
WACC
PV UFCF 11.568.738.378.027.69
SUM PV UFCF 44.37

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.45
Free cash flow (t + 1) 9.75
Terminal Value 398.09
Present Value of Terminal Value 320.21

Intrinsic Value

Enterprise Value 364.59
Net Debt 164.57
Equity Value 200.02
Shares Outstanding 22.54
Equity Value Per Share 8.88