Discounted Cash Flow (DCF) Analysis Unlevered

The Children's Place, Inc. (PLCE)

$20.38

+0.86 (+4.41%)
All numbers are in Millions, Currency in USD
Stock DCF: 197.13 | 20.38 | undervalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 1,938.081,870.671,522.601,915.361,708.481,678.201,648.451,619.231,590.521,562.33
Revenue (%)
EBITDA 186.31177.18-56.46335.5756.45121.50119.35117.23115.16113.11
EBITDA (%)
EBIT 117.42-46.61-122.86277.154.9834.4433.8333.2332.6432.06
EBIT (%)
Depreciation 68.88223.7966.4158.4251.4687.0785.5284.0182.5281.06
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 69.1468.4963.5554.7916.6951.1550.2449.3548.4847.62
Total Cash (%)
Account Receivables 35.1232.8139.5321.8649.5834.2633.6533.0532.4731.89
Account Receivables (%)
Inventories 303.47327.16388.14428.81447.80359.93353.55347.28341.13335.08
Inventories (%)
Accounts Payable 194.79213.12239.17183.76177.15191.70188.30184.96181.68178.46
Accounts Payable (%)
Capital Expenditure -71.11-134.45-30.59-29.31-45.58-57.27-56.26-55.26-54.28-53.32
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 20.38
Beta 2.083
Diluted Shares Outstanding 13.04
Cost of Debt
Tax Rate 92.29
After-tax Cost of Debt 0.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity 14.117
Total Debt 511.80
Total Equity 265.78
Total Capital 777.58
Debt Weighting 65.82
Equity Weighting 34.18
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 1,938.081,870.671,522.601,915.361,708.481,678.201,648.451,619.231,590.521,562.33
EBITDA 186.31177.18-56.46335.5756.45121.50119.35117.23115.16113.11
EBIT 117.42-46.61-122.86277.154.9834.4433.8333.2332.6432.06
Tax Rate 6.97%17.10%33.71%27.18%92.29%35.45%35.45%35.45%35.45%35.45%
EBIAT 109.24-38.64-81.44201.830.3822.2321.8321.4521.0720.69
Depreciation 68.88223.7966.4158.4251.4687.0785.5284.0182.5281.06
Accounts Receivable -2.31-6.7217.67-27.7215.330.610.600.590.58
Inventories --23.70-60.98-40.67-18.9887.866.386.276.166.05
Accounts Payable -18.3326.06-55.42-6.6114.55-3.40-3.34-3.28-3.22
Capital Expenditure -71.11-134.45-30.59-29.31-45.58-57.27-56.26-55.26-54.28-53.32
UFCF 107.0147.64-87.26152.52-47.04169.7754.6953.7252.7751.84
WACC
PV UFCF 161.6249.5746.3543.3540.54
SUM PV UFCF 341.43

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.04
Free cash flow (t + 1) 53.65
Terminal Value 3,483.73
Present Value of Terminal Value 2,724.40

Intrinsic Value

Enterprise Value 3,065.83
Net Debt 495.11
Equity Value 2,570.72
Shares Outstanding 13.04
Equity Value Per Share 197.13