Discounted Cash Flow (DCF) Analysis Unlevered
Bath & Body Works, Inc. (LB)
$79.92
-0.15 (-0.19%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 12,574 | 12,632 | 13,237 | 12,914 | 11,847 | 11,685.53 | 11,526.26 | 11,369.17 | 11,214.21 | 11,061.37 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 2,608 | 2,289 | 1,832 | 785 | 2,051 | 1,778.37 | 1,754.13 | 1,730.23 | 1,706.64 | 1,683.38 |
| EBITDA (%) | ||||||||||
| EBIT | 2,090 | 1,718 | 1,242 | 197 | 1,530 | 1,263.09 | 1,245.87 | 1,228.89 | 1,212.14 | 1,195.62 |
| EBIT (%) | ||||||||||
| Depreciation | 518 | 571 | 590 | 588 | 521 | 515.29 | 508.26 | 501.34 | 494.50 | 487.76 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Total Cash | 1,934 | 1,515 | 1,413 | 1,499 | 3,903 | 1,930.49 | 1,904.17 | 1,878.22 | 1,852.62 | 1,827.37 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 294 | 310 | 367 | 306 | 269 | 285.24 | 281.35 | 277.52 | 273.74 | 270.01 |
| Account Receivables (%) | ||||||||||
| Inventories | 1,096 | 1,240 | 1,248 | 1,287 | 1,273 | 1,137.52 | 1,122.02 | 1,106.72 | 1,091.64 | 1,076.76 |
| Inventories (%) | ||||||||||
| Accounts Payable | 683 | 717 | 711 | 647 | 683 | 636.97 | 628.28 | 619.72 | 611.27 | 602.94 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -990 | -707 | -629 | -458 | -228 | -553.74 | -546.19 | -538.74 | -531.40 | -524.16 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 79.92 |
|---|---|
| Beta | 1.776 |
| Diluted Shares Outstanding | 281 |
| Cost of Debt | |
| Tax Rate | 22.71 |
| After-tax Cost of Debt | 3.58% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 11.876 |
| Total Debt | 9,455 |
| Total Equity | 22,457.52 |
| Total Capital | 31,912.52 |
| Debt Weighting | 29.63 |
| Equity Weighting | 70.37 |
| Wacc |
Build Up Free Cash
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 12,574 | 12,632 | 13,237 | 12,914 | 11,847 | 11,685.53 | 11,526.26 | 11,369.17 | 11,214.21 | 11,061.37 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 2,608 | 2,289 | 1,832 | 785 | 2,051 | 1,778.37 | 1,754.13 | 1,730.23 | 1,706.64 | 1,683.38 |
| EBIT | 2,090 | 1,718 | 1,242 | 197 | 1,530 | 1,263.09 | 1,245.87 | 1,228.89 | 1,212.14 | 1,195.62 |
| Tax Rate | 31.72% | 25.08% | 24.85% | -102.21% | 22.71% | 0.43% | 0.43% | 0.43% | 0.43% | 0.43% |
| EBIAT | 1,427.02 | 1,287.19 | 933.31 | 398.35 | 1,182.53 | 1,257.65 | 1,240.51 | 1,223.60 | 1,206.92 | 1,190.47 |
| Depreciation | 518 | 571 | 590 | 588 | 521 | 515.29 | 508.26 | 501.34 | 494.50 | 487.76 |
| Accounts Receivable | - | -16 | -57 | 61 | 37 | -16.24 | 3.89 | 3.83 | 3.78 | 3.73 |
| Inventories | - | -144 | -8 | -39 | 14 | 135.48 | 15.50 | 15.29 | 15.08 | 14.88 |
| Accounts Payable | - | 34 | -6 | -64 | 36 | -46.03 | -8.68 | -8.56 | -8.45 | -8.33 |
| Capital Expenditure | -990 | -707 | -629 | -458 | -228 | -553.74 | -546.19 | -538.74 | -531.40 | -524.16 |
| UFCF | 955.02 | 1,025.19 | 823.31 | 486.35 | 1,562.53 | 1,292.40 | 1,213.29 | 1,196.76 | 1,180.44 | 1,164.36 |
| WACC | ||||||||||
| PV UFCF | 1,181.14 | 1,013.38 | 913.51 | 823.49 | 742.34 | |||||
| SUM PV UFCF | 4,673.86 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.42 |
| Free cash flow (t + 1) | 1,187.64 |
| Terminal Value | 16,005.97 |
| Present Value of Terminal Value | 10,204.66 |
Intrinsic Value
| Enterprise Value | 14,878.52 |
|---|---|
| Net Debt | 5,552 |
| Equity Value | 9,326.52 |
| Shares Outstanding | 281 |
| Equity Value Per Share | 33.19 |