Discounted Cash Flow (DCF) Analysis Unlevered

Kontoor Brands, Inc. (KTB)

$43.71

-1.08 (-2.41%)
All numbers are in Millions, Currency in USD
Stock DCF: 35.54 | 43.71 | overvalue

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 2,830.112,7642,548.842,419.862,297.422,181.172,070.801,966.011,866.531,772.081,682.41
Revenue (%)
EBITDA 394.04371.11201.74284.45270.06256.40243.42231.10219.41208.31197.77
EBITDA (%)
EBIT 360.42340.08170.98256.08243.12230.82219.14208.05197.52187.53178.04
EBIT (%)
Depreciation 33.6331.0330.7628.3826.9425.5824.2823.0521.8920.7819.73
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 80.8196.78106.8185.0880.7776.6872.8069.1265.6262.3059.15
Total Cash (%)
Account Receivables 1,016.971,318.60228.46746.96709.16673.28639.21606.86576.16547519.32
Account Receivables (%)
Inventories 440.30473.81458.10408.74388.06368.42349.78332.08315.27299.32284.18
Inventories (%)
Accounts Payable 174.35134.13147.35135.47128.61122.10115.93110.06104.4999.2094.18
Accounts Payable (%)
Capital Expenditure -26.46-22.70-37.49-26.03-24.71-23.46-22.28-21.15-20.08-19.06-18.10
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 43.71
Beta 1.167
Diluted Shares Outstanding 59.09
Cost of Debt
Tax Rate 20.11
After-tax Cost of Debt 3.66%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.105
Total Debt 848.75
Total Equity 2,582.65
Total Capital 3,431.40
Debt Weighting 24.73
Equity Weighting 75.27
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 2,830.112,7642,548.842,419.862,297.422,181.172,070.801,966.011,866.531,772.081,682.41
EBITDA 394.04371.11201.74284.45270.06256.40243.42231.10219.41208.31197.77
EBIT 360.42340.08170.98256.08243.12230.82219.14208.05197.52187.53178.04
Tax Rate 67.65%22.64%28.51%29.16%6.87%20.11%29.16%29.16%29.16%29.16%29.16%
EBIAT 116.60263.07122.24181.42226.41184.41155.25147.39139.93132.85126.13
Depreciation 33.6331.0330.7628.3826.9425.5824.2823.0521.8920.7819.73
Accounts Receivable --301.631,090.14-518.5037.8035.8834.0732.3430.7129.1527.68
Inventories --33.5215.7149.3620.6819.6418.6417.7016.8015.9515.15
Accounts Payable --40.2213.22-11.88-6.85-6.51-6.18-5.87-5.57-5.29-5.02
Capital Expenditure -26.46-22.70-37.49-26.03-62.39-36.87-22.28-21.15-20.08-19.06-18.10
UFCF 123.76-103.961,234.58-297.25280.26235.54203.79193.48183.69174.39165.57
WACC
PV UFCF -320.32280.26218.58175.49154.62136.22120.02105.74
SUM PV UFCF 745.79

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.76
Free cash flow (t + 1) 168.88
Terminal Value 2,931.91
Present Value of Terminal Value 2,017.73

Intrinsic Value

Enterprise Value 2,763.52
Net Debt 663.43
Equity Value 2,100.09
Shares Outstanding 59.09
Equity Value Per Share 35.54