Discounted Cash Flow (DCF) Analysis Unlevered

DICK'S Sporting Goods, Inc. (DKS)

$104.64

-8.31 (-7.36%)
All numbers are in Millions, Currency in USD
Stock DCF: 131.69 | 104.64 | undervalue

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 8,590.478,436.578,750.749,584.0212,293.3713,514.2314,856.3316,331.7217,953.6319,736.62
Revenue (%)
EBITDA 747.04686695.161,086.562,374.831,498.091,646.871,810.421,990.222,187.87
EBITDA (%)
EBIT 509.38442.17424.72760.552,052.281,098.811,207.941,327.901,459.771,604.74
EBIT (%)
Depreciation 237.65243.83270.45326.01322.55399.28438.93482.52530.44583.12
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 101.25113.6569.331,658.072,643.211,138.431,251.481,375.771,512.401,662.59
Total Cash (%)
Account Receivables 64.5444.1158.9459.5570.2484.8893.30102.57112.76123.96
Account Receivables (%)
Inventories 1,711.101,824.702,202.271,953.572,297.612,859.263,143.223,455.373,798.534,175.76
Inventories (%)
Accounts Payable 843.08889.911,001.591,258.091,281.321,496.241,644.831,808.181,987.752,185.16
Accounts Payable (%)
Capital Expenditure -474.35-198.22-217.46-224.03-308.26-410.87-451.67-496.53-545.84-600.05
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 104.64
Beta 1.568
Diluted Shares Outstanding 92.64
Cost of Debt
Tax Rate 23.79
After-tax Cost of Debt 0.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.204
Total Debt 4,510.19
Total Equity 9,693.74
Total Capital 14,203.94
Debt Weighting 31.75
Equity Weighting 68.25
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 8,590.478,436.578,750.749,584.0212,293.3713,514.2314,856.3316,331.7217,953.6319,736.62
EBITDA 747.04686695.161,086.562,374.831,498.091,646.871,810.421,990.222,187.87
EBIT 509.38442.17424.72760.552,052.281,098.811,207.941,327.901,459.771,604.74
Tax Rate 35.48%25.94%27.04%25.50%23.79%27.55%27.55%27.55%27.55%27.55%
EBIAT 328.64327.45309.87566.621,563.95796.07875.13962.041,057.581,162.60
Depreciation 237.65243.83270.45326.01322.55399.28438.93482.52530.44583.12
Accounts Receivable -20.43-14.83-0.61-10.70-14.63-8.43-9.27-10.19-11.20
Inventories --113.59-377.58248.71-344.04-561.65-283.95-312.15-343.15-377.23
Accounts Payable -46.83111.68256.5023.23214.92148.59163.35179.57197.40
Capital Expenditure -474.35-198.22-217.46-224.03-308.26-410.87-451.67-496.53-545.84-600.05
UFCF 91.94326.7482.131,173.201,246.73423.11718.59789.96868.41954.65
WACC
PV UFCF 391.91616.53627.79639.25650.92
SUM PV UFCF 2,926.41

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.96
Free cash flow (t + 1) 973.74
Terminal Value 16,337.98
Present Value of Terminal Value 11,139.97

Intrinsic Value

Enterprise Value 14,066.38
Net Debt 1,866.99
Equity Value 12,199.39
Shares Outstanding 92.64
Equity Value Per Share 131.69