Discounted Cash Flow (DCF) Analysis Unlevered
Capri Holdings Limited (CPRI)
$44.18
+1.33 (+3.10%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 5,238 | 5,551 | 4,060 | 5,654 | 6,000.34 | 6,367.89 | 6,757.96 | 7,171.92 | 7,611.24 |
|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||
| EBITDA | 885 | 54 | 259 | 1,125 | 662.22 | 702.78 | 745.83 | 791.52 | 840 |
| EBITDA (%) | |||||||||
| EBIT | 660 | -195 | 47 | 932 | 400.96 | 425.52 | 451.58 | 479.24 | 508.60 |
| EBIT (%) | |||||||||
| Depreciation | 225 | 249 | 212 | 193 | 261.26 | 277.26 | 294.25 | 312.27 | 331.40 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Total Cash | 172 | 592 | 232 | 169 | 339.80 | 360.61 | 382.70 | 406.14 | 431.02 |
|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | |||||||||
| Account Receivables | 403 | 319 | 398 | 464 | 471.78 | 500.68 | 531.34 | 563.89 | 598.43 |
| Account Receivables (%) | |||||||||
| Inventories | 953 | 827 | 736 | 1,096 | 1,059.13 | 1,124.01 | 1,192.86 | 1,265.93 | 1,343.47 |
| Inventories (%) | |||||||||
| Accounts Payable | 371 | 428 | 512 | 555 | 558.33 | 592.53 | 628.83 | 667.35 | 708.23 |
| Accounts Payable (%) | |||||||||
| Capital Expenditure | -184 | -223 | -111 | -131 | -188.73 | -200.29 | -212.56 | -225.58 | -239.39 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 44.18 |
|---|---|
| Beta | 2.288 |
| Diluted Shares Outstanding | 152.50 |
| Cost of Debt | |
| Tax Rate | 10.16 |
| After-tax Cost of Debt | 0.53% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 14.405 |
| Total Debt | 3,041 |
| Total Equity | 6,737.36 |
| Total Capital | 9,778.36 |
| Debt Weighting | 31.10 |
| Equity Weighting | 68.90 |
| Wacc |
Build Up Free Cash
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 5,238 | 5,551 | 4,060 | 5,654 | 6,000.34 | 6,367.89 | 6,757.96 | 7,171.92 | 7,611.24 |
|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 885 | 54 | 259 | 1,125 | 662.22 | 702.78 | 745.83 | 791.52 | 840 |
| EBIT | 660 | -195 | 47 | 932 | 400.96 | 425.52 | 451.58 | 479.24 | 508.60 |
| Tax Rate | 12.56% | -3.72% | 2,166.67% | 10.16% | 546.42% | 546.42% | 546.42% | 546.42% | 546.42% |
| EBIAT | 577.10 | -202.26 | -971.33 | 837.27 | -1,789.94 | -1,899.58 | -2,015.94 | -2,139.43 | -2,270.48 |
| Depreciation | 225 | 249 | 212 | 193 | 261.26 | 277.26 | 294.25 | 312.27 | 331.40 |
| Accounts Receivable | - | 84 | -79 | -66 | -7.78 | -28.90 | -30.67 | -32.55 | -34.54 |
| Inventories | - | 126 | 91 | -360 | 36.87 | -64.88 | -68.85 | -73.07 | -77.55 |
| Accounts Payable | - | 57 | 84 | 43 | 3.33 | 34.20 | 36.30 | 38.52 | 40.88 |
| Capital Expenditure | -184 | -223 | -111 | -131 | -188.73 | -200.29 | -212.56 | -225.58 | -239.39 |
| UFCF | 618.10 | 90.74 | -774.33 | 516.27 | -1,684.98 | -1,882.18 | -1,997.47 | -2,119.83 | -2,249.68 |
| WACC | |||||||||
| PV UFCF | -1,684.98 | -1,709.67 | -1,648.11 | -1,588.76 | -1,531.54 | ||||
| SUM PV UFCF | -7,414.89 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 10.09 |
| Free cash flow (t + 1) | -2,294.67 |
| Terminal Value | -28,364.31 |
| Present Value of Terminal Value | -17,540.13 |
Intrinsic Value
| Enterprise Value | -24,955.02 |
|---|---|
| Net Debt | 2,872 |
| Equity Value | -27,827.02 |
| Shares Outstanding | 152.50 |
| Equity Value Per Share | -182.47 |