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	8,436.57	8,750.74	9,584.02	12,293.37	12,368.20	13,670.71	15,110.38	16,701.67	18,460.55	20,404.65
Revenue (%)
EBITDA	686	695.16	1,086.56	2,374.83	1,844.44	1,685.41	1,862.91	2,059.09	2,275.94	2,515.62
EBITDA (%)
EBIT	442.17	424.72	760.55	2,052.28	1,478.97	1,276.36	1,410.77	1,559.34	1,723.56	1,905.07
EBIT (%)
Depreciation	243.83	270.45	326.01	322.55	365.48	409.06	452.14	499.75	552.38	610.55
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	113.65	69.33	1,658.07	2,643.21	1,924.39	1,544.79	1,707.47	1,887.29	2,086.04	2,305.73
Total Cash (%)
Account Receivables	44.11	58.94	59.55	70.24	79.47	82.89	91.61	101.26	111.93	123.71
Account Receivables (%)
Inventories	1,824.70	2,202.27	1,953.57	2,297.61	2,830.92	2,973.58	3,286.73	3,632.86	4,015.44	4,438.31
Inventories (%)
Accounts Payable	889.91	1,001.59	1,258.09	1,281.32	1,206.07	1,511.85	1,671.06	1,847.04	2,041.56	2,256.56
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	8,436.57	8,750.74	9,584.02	12,293.37	12,368.20	13,670.71	15,110.38	16,701.67	18,460.55	20,404.65
EBITDA	686	695.16	1,086.56	2,374.83	1,844.44	1,685.41	1,862.91	2,059.09	2,275.94	2,515.62
EBIT	442.17	424.72	760.55	2,052.28	1,478.97	1,276.36	1,410.77	1,559.34	1,723.56	1,905.07
Tax Rate	25.94%	27.04%	25.50%	23.79%	24.62%	25.38%	25.38%	25.38%	25.38%	25.38%
EBIAT	327.45	309.87	566.62	1,563.95	1,114.92	952.44	1,052.74	1,163.61	1,286.15	1,421.59
Depreciation	243.83	270.45	326.01	322.55	365.48	409.06	452.14	499.75	552.38	610.55
Accounts Receivable	-	-14.83	-0.61	-10.70	-9.23	-3.41	-8.73	-9.65	-10.66	-11.79
Inventories	-	-377.58	248.71	-344.04	-533.31	-142.66	-313.15	-346.13	-382.58	-422.87
Accounts Payable	-	111.68	256.50	23.23	-75.26	305.78	159.21	175.98	194.51	215
Capital Expenditure	-198.22	-217.46	-224.03	-308.26	-364.07	-345.14	-381.48	-421.66	-466.06	-515.15
UFCF	373.06	82.13	1,173.20	1,246.73	498.52	1,176.07	960.73	1,061.90	1,173.73	1,297.34
WACC
PV UFCF						1,083.34	815.19	829.99	845.06	860.41
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