Discounted Cash Flow (DCF) Analysis Unlevered

DICK'S Sporting Goods, Inc. (DKS)

$135.41

+0.94 (+0.70%)
All numbers are in Millions, Currency in USD
Stock DCF: 156.45 | 135.41 | 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 8,436.578,750.749,584.0212,293.3712,368.2013,670.7115,110.3816,701.6718,460.5520,404.65
Revenue (%)
EBITDA 686695.161,086.562,374.831,844.441,685.411,862.912,059.092,275.942,515.62
EBITDA (%)
EBIT 442.17424.72760.552,052.281,478.971,276.361,410.771,559.341,723.561,905.07
EBIT (%)
Depreciation 243.83270.45326.01322.55365.48409.06452.14499.75552.38610.55
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 113.6569.331,658.072,643.211,924.391,544.791,707.471,887.292,086.042,305.73
Total Cash (%)
Account Receivables 44.1158.9459.5570.2479.4782.8991.61101.26111.93123.71
Account Receivables (%)
Inventories 1,824.702,202.271,953.572,297.612,830.922,973.583,286.733,632.864,015.444,438.31
Inventories (%)
Accounts Payable 889.911,001.591,258.091,281.321,206.071,511.851,671.061,847.042,041.562,256.56
Accounts Payable (%)
Capital Expenditure -198.22-217.46-224.03-308.26-364.07-345.14-381.48-421.66-466.06-515.15
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 135.41
Beta 1.466
Diluted Shares Outstanding 99.27
Cost of Debt
Tax Rate 24.62
After-tax Cost of Debt 1.70%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.701
Total Debt 4,205.14
Total Equity 13,442.69
Total Capital 17,647.83
Debt Weighting 23.83
Equity Weighting 76.17
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 8,436.578,750.749,584.0212,293.3712,368.2013,670.7115,110.3816,701.6718,460.5520,404.65
EBITDA 686695.161,086.562,374.831,844.441,685.411,862.912,059.092,275.942,515.62
EBIT 442.17424.72760.552,052.281,478.971,276.361,410.771,559.341,723.561,905.07
Tax Rate 25.94%27.04%25.50%23.79%24.62%25.38%25.38%25.38%25.38%25.38%
EBIAT 327.45309.87566.621,563.951,114.92952.441,052.741,163.611,286.151,421.59
Depreciation 243.83270.45326.01322.55365.48409.06452.14499.75552.38610.55
Accounts Receivable --14.83-0.61-10.70-9.23-3.41-8.73-9.65-10.66-11.79
Inventories --377.58248.71-344.04-533.31-142.66-313.15-346.13-382.58-422.87
Accounts Payable -111.68256.5023.23-75.26305.78159.21175.98194.51215
Capital Expenditure -198.22-217.46-224.03-308.26-364.07-345.14-381.48-421.66-466.06-515.15
UFCF 373.0682.131,173.201,246.73498.521,176.07960.731,061.901,173.731,297.34
WACC
PV UFCF 1,083.34815.19829.99845.06860.41
SUM PV UFCF 4,433.99

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.56
Free cash flow (t + 1) 1,323.29
Terminal Value 20,172.04
Present Value of Terminal Value 13,378.29

Intrinsic Value

Enterprise Value 17,812.29
Net Debt 2,280.75
Equity Value 15,531.54
Shares Outstanding 99.27
Equity Value Per Share 156.45