Discounted Cash Flow (DCF) Analysis Unlevered

Kontoor Brands, Inc. (KTB)

$59.08

-0.03 (-0.05%)
All numbers are in Millions, Currency in USD
Stock DCF: 41.47 | 59.08 | overvalue

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 2,548.842,097.842,475.922,631.442,607.472,644.622,682.292,720.512,759.272,798.57
Revenue (%)
EBITDA 234.38157.42320.10391.18319.27300.10304.38308.71313.11317.57
EBITDA (%)
EBIT 203.62122.93283.50354.05281.22262.02265.75269.54273.38277.28
EBIT (%)
Depreciation 30.7634.4936.6037.1338.0538.0838.6239.1739.7340.29
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 106.81248.14185.3259.18215.05179.83182.40184.99187.63190.30
Total Cash (%)
Account Receivables 228.46231.40289.80225.86217.67257.21260.88264.59268.36272.19
Account Receivables (%)
Inventories 458.10340.73362.96596.84500.35479.97486.81493.74500.78507.91
Inventories (%)
Accounts Payable 147.35167.24214.20206.26180.22196.52199.32202.16205.04207.96
Accounts Payable (%)
Capital Expenditure -37.49-62.39-36.87-28.40-45.72-46.37-47.03-47.70-48.38-49.07
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 59.08
Beta 1.177
Diluted Shares Outstanding 56.93
Cost of Debt
Tax Rate 15.04
After-tax Cost of Debt 3.53%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.714
Total Debt 841.68
Total Equity 3,363.48
Total Capital 4,205.16
Debt Weighting 20.02
Equity Weighting 79.98
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 2,548.842,097.842,475.922,631.442,607.472,644.622,682.292,720.512,759.272,798.57
EBITDA 234.38157.42320.10391.18319.27300.10304.38308.71313.11317.57
EBIT 203.62122.93283.50354.05281.22262.02265.75269.54273.38277.28
Tax Rate 28.51%6.87%20.11%23.08%15.04%18.72%18.72%18.72%18.72%18.72%
EBIAT 145.57114.48226.50272.35238.92212.97216219.08222.20225.37
Depreciation 30.7634.4936.6037.1338.0538.0838.6239.1739.7340.29
Accounts Receivable --2.94-58.4063.948.18-39.54-3.66-3.72-3.77-3.82
Inventories -117.37-22.23-233.8896.4820.38-6.84-6.94-7.03-7.13
Accounts Payable -19.8946.96-7.94-26.0416.302.802.842.882.92
Capital Expenditure -37.49-62.39-36.87-28.40-45.72-46.37-47.03-47.70-48.38-49.07
UFCF 138.85220.90192.56103.20309.87201.82199.89202.74205.63208.56
WACC
PV UFCF 186.05169.86158.81148.49138.83
SUM PV UFCF 802.04

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.48
Free cash flow (t + 1) 212.73
Terminal Value 3,282.86
Present Value of Terminal Value 2,185.27

Intrinsic Value

Enterprise Value 2,987.30
Net Debt 626.63
Equity Value 2,360.68
Shares Outstanding 56.93
Equity Value Per Share 41.47