Discounted Cash Flow (DCF) Analysis Unlevered

Nordstrom, Inc. (JWN)

$24.33

+0.34 (+1.42%)
All numbers are in Millions, Currency in USD
Stock DCF: 172.12 | 24.33 | 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 15,47815,86015,52410,71514,78915,062.3415,340.7415,624.2715,913.0516,207.17
Revenue (%)
EBITDA 1,5971,5211,648-201615988.281,006.551,025.151,044.101,063.40
EBITDA (%)
EBIT 931852794-1,044-203.59207.35211.19215.09219.07
EBIT (%)
Depreciation 666669854843615784.69799.20813.97829.01844.33
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 1,181957853681322834.21849.63865.33881.32897.61
Total Cash (%)
Account Receivables 145148179245255211.89215.81219.80223.86228
Account Receivables (%)
Inventories 2,0271,9781,9201,8632,2892,132.832,172.252,212.402,253.292,294.94
Inventories (%)
Accounts Payable 1,4091,4691,5761,9601,5291,721.581,753.401,785.811,818.811,852.43
Accounts Payable (%)
Capital Expenditure -731-654-935-385-506-659.25-671.43-683.84-696.48-709.35
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 24.33
Beta 2.395
Diluted Shares Outstanding 157.20
Cost of Debt
Tax Rate -27.64
After-tax Cost of Debt -3.68%
Risk-Free Rate
Market Risk Premium
Cost of Equity 14.182
Total Debt 6,691
Total Equity 3,824.68
Total Capital 10,515.68
Debt Weighting 63.63
Equity Weighting 36.37
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 15,47815,86015,52410,71514,78915,062.3415,340.7415,624.2715,913.0516,207.17
EBITDA 1,5971,5211,648-201615988.281,006.551,025.151,044.101,063.40
EBIT 931852794-1,044-203.59207.35211.19215.09219.07
Tax Rate 44.68%23.06%27.27%43.81%-27.64%22.24%22.24%22.24%22.24%22.24%
EBIAT 515655.56577.45-586.61-158.32161.25164.23167.26170.35
Depreciation 666669854843615784.69799.20813.97829.01844.33
Accounts Receivable --3-31-66-1043.11-3.92-3.99-4.06-4.14
Inventories -495857-426156.17-39.42-40.15-40.89-41.65
Accounts Payable -60107384-431192.5831.8232.4133.0133.62
Capital Expenditure -731-654-935-385-506-659.25-671.43-683.84-696.48-709.35
UFCF 450776.56630.45246.39-758675.62277.50282.62287.85293.17
WACC
PV UFCF 657.09262.48260257.54255.11
SUM PV UFCF 1,692.23

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 2.82
Free cash flow (t + 1) 299.03
Terminal Value 36,467.27
Present Value of Terminal Value 31,733.30

Intrinsic Value

Enterprise Value 33,425.53
Net Debt 6,369
Equity Value 27,056.53
Shares Outstanding 157.20
Equity Value Per Share 172.12