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
Stock DCF: 33.19 | 79.92 | overvalue

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 12,57412,63213,23712,91411,84711,685.5311,526.2611,369.1711,214.2111,061.37
Revenue (%)
EBITDA 2,6082,2891,8327852,0511,778.371,754.131,730.231,706.641,683.38
EBITDA (%)
EBIT 2,0901,7181,2421971,5301,263.091,245.871,228.891,212.141,195.62
EBIT (%)
Depreciation 518571590588521515.29508.26501.34494.50487.76
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 1,9341,5151,4131,4993,9031,930.491,904.171,878.221,852.621,827.37
Total Cash (%)
Account Receivables 294310367306269285.24281.35277.52273.74270.01
Account Receivables (%)
Inventories 1,0961,2401,2481,2871,2731,137.521,122.021,106.721,091.641,076.76
Inventories (%)
Accounts Payable 683717711647683636.97628.28619.72611.27602.94
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 12,57412,63213,23712,91411,84711,685.5311,526.2611,369.1711,214.2111,061.37
EBITDA 2,6082,2891,8327852,0511,778.371,754.131,730.231,706.641,683.38
EBIT 2,0901,7181,2421971,5301,263.091,245.871,228.891,212.141,195.62
Tax Rate 31.72%25.08%24.85%-102.21%22.71%0.43%0.43%0.43%0.43%0.43%
EBIAT 1,427.021,287.19933.31398.351,182.531,257.651,240.511,223.601,206.921,190.47
Depreciation 518571590588521515.29508.26501.34494.50487.76
Accounts Receivable --16-576137-16.243.893.833.783.73
Inventories --144-8-3914135.4815.5015.2915.0814.88
Accounts Payable -34-6-6436-46.03-8.68-8.56-8.45-8.33
Capital Expenditure -990-707-629-458-228-553.74-546.19-538.74-531.40-524.16
UFCF 955.021,025.19823.31486.351,562.531,292.401,213.291,196.761,180.441,164.36
WACC
PV UFCF 1,181.141,013.38913.51823.49742.34
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