Discounted Cash Flow (DCF) Analysis Unlevered

G-III Apparel Group, Ltd. (GIII)

$14.23

-0.09 (-0.63%)

All numbers are in Millions, Currency in USD

Stock DCF: 18.06 | 14.23 | 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	3,076.21	3,160.46	2,055.15	2,766.54	3,226.73	3,380.12	3,540.80	3,709.12	3,885.44	4,070.15
Revenue (%)
EBITDA	266.57	265.24	124.73	348.76	-101.51	220.30	230.77	241.74	253.23	265.27
EBITDA (%)
EBIT	227.75	226.51	86.10	321.13	-129.27	178.21	186.68	195.56	204.85	214.59
EBIT (%)
Depreciation	38.82	38.73	38.62	27.63	27.76	42.09	44.09	46.19	48.38	50.68
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	70.14	197.37	351.93	465.98	191.65	327.42	342.98	359.29	376.36	394.26
Total Cash (%)
Account Receivables	502.13	530.14	492.70	605.51	636.94	667.22	698.94	732.16	766.97	803.43
Account Receivables (%)
Inventories	576.38	551.92	416.50	512.15	709.35	655.49	686.65	719.29	753.48	789.30
Inventories (%)
Accounts Payable	225.50	204.79	139.18	236.92	235.12	246.29	258	270.27	283.12	296.57
Accounts Payable (%)
Capital Expenditure	-29.20	-40.09	-20.13	-31.51	-34.98	-36.64	-38.38	-40.21	-42.12	-44.12
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 14.23
Beta	2.656
Diluted Shares Outstanding	47.65
Cost of Debt
Tax Rate	3.70
After-tax Cost of Debt	4.82%
Risk-Free Rate
Market Risk Premium
Cost of Equity	15.914
Total Debt	619.36
Total Equity	678.10
Total Capital	1,297.46
Debt Weighting	47.74
Equity Weighting	52.26
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	3,076.21	3,160.46	2,055.15	2,766.54	3,226.73	3,380.12	3,540.80	3,709.12	3,885.44	4,070.15
EBITDA	266.57	265.24	124.73	348.76	-101.51	220.30	230.77	241.74	253.23	265.27
EBIT	227.75	226.51	86.10	321.13	-129.27	178.21	186.68	195.56	204.85	214.59
Tax Rate	24.89%	21.01%	34.10%	25.97%	3.70%	21.93%	21.93%	21.93%	21.93%	21.93%
EBIAT	171.06	178.91	56.74	237.72	-124.49	139.12	145.73	152.66	159.92	167.52
Depreciation	38.82	38.73	38.62	27.63	27.76	42.09	44.09	46.19	48.38	50.68
Accounts Receivable	-	-28	37.44	-112.81	-31.43	-30.28	-31.72	-33.23	-34.81	-36.46
Inventories	-	24.47	135.41	-95.65	-197.19	53.86	-31.16	-32.64	-34.19	-35.82
Accounts Payable	-	-20.71	-65.60	97.74	-1.80	11.18	11.71	12.26	12.85	13.46
Capital Expenditure	-29.20	-40.09	-20.13	-31.50	-34.98	-36.64	-38.38	-40.21	-42.12	-44.12
UFCF	180.67	153.30	182.49	123.12	-362.13	179.32	100.27	105.04	110.03	115.26
WACC
PV UFCF						162.11	81.94	77.60	73.48	69.58
SUM PV UFCF										464.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.62
Free cash flow (t + 1)	117.57
Terminal Value	1,363.87
Present Value of Terminal Value	823.39

Intrinsic Value

Enterprise Value	1,288.10
Net Debt	427.71
Equity Value	860.39
Shares Outstanding	47.65
Equity Value Per Share	18.06