Discounted Cash Flow (DCF) Analysis Unlevered
Kontoor Brands, Inc. (KTB)
$49.74
+0.08 (+0.16%)
All numbers are in Millions, Currency in USD
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 | 2,830.11 | 2,764 | 2,548.84 | 2,419.86 | 2,297.42 | 2,181.17 | 2,070.80 | 1,966.01 | 1,866.53 | 1,772.08 | 1,682.41 |
---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | |||||||||||
EBITDA | 394.04 | 371.11 | 201.74 | 284.45 | 270.06 | 256.40 | 243.42 | 231.10 | 219.41 | 208.31 | 197.77 |
EBITDA (%) | |||||||||||
EBIT | 360.42 | 340.08 | 170.98 | 256.08 | 243.12 | 230.82 | 219.14 | 208.05 | 197.52 | 187.53 | 178.04 |
EBIT (%) | |||||||||||
Depreciation | 33.63 | 31.03 | 30.76 | 28.38 | 26.94 | 25.58 | 24.28 | 23.05 | 21.89 | 20.78 | 19.73 |
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 | 80.81 | 96.78 | 106.81 | 85.08 | 80.77 | 76.68 | 72.80 | 69.12 | 65.62 | 62.30 | 59.15 |
---|---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | |||||||||||
Account Receivables | 1,016.97 | 1,318.60 | 228.46 | 746.96 | 709.16 | 673.28 | 639.21 | 606.86 | 576.16 | 547 | 519.32 |
Account Receivables (%) | |||||||||||
Inventories | 440.30 | 473.81 | 458.10 | 408.74 | 388.06 | 368.42 | 349.78 | 332.08 | 315.27 | 299.32 | 284.18 |
Inventories (%) | |||||||||||
Accounts Payable | 174.35 | 134.13 | 147.35 | 135.47 | 128.61 | 122.10 | 115.93 | 110.06 | 104.49 | 99.20 | 94.18 |
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 | $ 49.74 |
---|---|
Beta | 1.176 |
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 | 9.082 |
Total Debt | 848.75 |
Total Equity | 2,938.94 |
Total Capital | 3,787.69 |
Debt Weighting | 22.41 |
Equity Weighting | 77.59 |
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 | 2,830.11 | 2,764 | 2,548.84 | 2,419.86 | 2,297.42 | 2,181.17 | 2,070.80 | 1,966.01 | 1,866.53 | 1,772.08 | 1,682.41 |
---|---|---|---|---|---|---|---|---|---|---|---|
EBITDA | 394.04 | 371.11 | 201.74 | 284.45 | 270.06 | 256.40 | 243.42 | 231.10 | 219.41 | 208.31 | 197.77 |
EBIT | 360.42 | 340.08 | 170.98 | 256.08 | 243.12 | 230.82 | 219.14 | 208.05 | 197.52 | 187.53 | 178.04 |
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 | 116.60 | 263.07 | 122.24 | 181.42 | 226.41 | 184.41 | 155.25 | 147.39 | 139.93 | 132.85 | 126.13 |
Depreciation | 33.63 | 31.03 | 30.76 | 28.38 | 26.94 | 25.58 | 24.28 | 23.05 | 21.89 | 20.78 | 19.73 |
Accounts Receivable | - | -301.63 | 1,090.14 | -518.50 | 37.80 | 35.88 | 34.07 | 32.34 | 30.71 | 29.15 | 27.68 |
Inventories | - | -33.52 | 15.71 | 49.36 | 20.68 | 19.64 | 18.64 | 17.70 | 16.80 | 15.95 | 15.15 |
Accounts Payable | - | -40.22 | 13.22 | -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 | -103.96 | 1,234.58 | -297.25 | 280.26 | 235.54 | 203.79 | 193.48 | 183.69 | 174.39 | 165.57 |
WACC | |||||||||||
PV UFCF | -320.65 | 280.26 | 218.35 | 175.14 | 154.14 | 135.67 | 119.40 | 105.09 | |||
SUM PV UFCF | 743.70 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.87 |
Free cash flow (t + 1) | 168.88 |
Terminal Value | 2,876.97 |
Present Value of Terminal Value | 1,969.84 |
Intrinsic Value
Enterprise Value | 2,713.55 |
---|---|
Net Debt | 663.43 |
Equity Value | 2,050.11 |
Shares Outstanding | 59.09 |
Equity Value Per Share | 34.70 |