Discounted Cash Flow (DCF) Analysis Unlevered

Hanesbrands Inc. (HBI)

$6.6281

-0.14 (-2.10%)
All numbers are in Millions, Currency in USD
Stock DCF: 42.73 | 6.6281 | undervalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 6,471.416,803.956,966.927,229.367,501.697,784.278,077.508,381.778,697.519,025.149,365.11
Revenue (%)
EBITDA 832.09973.35989.27996.771,034.311,073.281,113.711,155.661,199.191,244.361,291.24
EBITDA (%)
EBIT 709.61841.56858.31859.18891.54925.13959.97996.141,033.661,072.601,113
EBIT (%)
Depreciation 122.49131.80130.97137.59142.77148.15153.73159.52165.53171.77178.24
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 421.57433.02328.88424.10440.08456.65473.86491.71510.23529.45549.39
Total Cash (%)
Account Receivables 903.32870.88815.21926.79961.70997.931,035.521,074.521,1151,1571,200.59
Account Receivables (%)
Inventories 1,874.992,054.461,905.842,085.052,163.592,245.092,329.662,417.422,508.482,602.972,701.03
Inventories (%)
Accounts Payable 867.651,029.93959.011,019.581,057.981,097.841,139.191,182.101,226.631,272.841,320.79
Accounts Payable (%)
Capital Expenditure -87.01-86.29-101.08-97.93-101.62-105.44-109.41-113.54-117.81-122.25-126.86
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 6.6,281
Beta 1.492
Diluted Shares Outstanding 352.08
Cost of Debt
Tax Rate 86.71
After-tax Cost of Debt 0.58%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.722
Total Debt 3,742.47
Total Equity 2,333.61
Total Capital 6,076.08
Debt Weighting 61.59
Equity Weighting 38.41
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 6,471.416,803.956,966.927,229.367,501.697,784.278,077.508,381.778,697.519,025.149,365.11
EBITDA 832.09973.35989.27996.771,034.311,073.281,113.711,155.661,199.191,244.361,291.24
EBIT 709.61841.56858.31859.18891.54925.13959.97996.141,033.661,072.601,113
Tax Rate 88.48%14.50%11.62%52.01%58.73%86.71%52.01%52.01%52.01%52.01%52.01%
EBIAT 81.75719.53758.54412.33367.96122.95460.71478.06496.07514.76534.15
Depreciation 122.49131.80130.97137.59142.77148.15153.73159.52165.53171.77178.24
Accounts Receivable -32.4455.67-111.58-34.91-36.23-37.59-39.01-40.48-42-43.58
Inventories --179.47148.61-179.20-78.54-81.50-84.57-87.76-91.06-94.49-98.05
Accounts Payable -162.28-70.9360.5738.4139.8541.3542.9144.5346.2147.95
Capital Expenditure -87.01-86.29-101.08-97.93-53.73-69.27-109.41-113.54-117.81-122.25-126.86
UFCF 117.23780.29921.78221.79334.0787.78424.22440.20456.78473.99491.84
WACC
PV UFCF 231.72334.0784.02388.62385.97383.33380.72378.12
SUM PV UFCF 2,002.62

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.48
Free cash flow (t + 1) 501.68
Terminal Value 20,228.99
Present Value of Terminal Value 16,248.32

Intrinsic Value

Enterprise Value 18,250.94
Net Debt 3,206.19
Equity Value 15,044.75
Shares Outstanding 352.08
Equity Value Per Share 42.73