Discounted Cash Flow (DCF) Analysis Unlevered

PVH Corp. (PVH)

$63.45

-2.91 (-4.39%)
All numbers are in Millions, Currency in USD
Stock DCF: 37.79 | 63.45 | overvalue

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 8,914.809,656.809,9097,132.609,154.709,412.549,677.659,950.2210,230.4710,518.61
Revenue (%)
EBITDA 965.301,233890-740.301,394.90704.73724.58744.99765.97787.55
EBITDA (%)
EBIT 640.40898.20566.20-1,066.101,081.60358.93369.04379.43390.12401.11
EBIT (%)
Depreciation 324.90334.80323.80325.80313.30345.80355.54365.56375.85386.44
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 493.90452503.401,651.401,242.50979.401,006.981,035.341,064.501,094.49
Total Cash (%)
Account Receivables 696.40803.80765.10666.60765.30782.41804.45827.10850.40874.35
Account Receivables (%)
Inventories 1,591.301,732.401,615.701,417.101,348.501,632.011,677.971,725.231,773.821,823.78
Inventories (%)
Accounts Payable 889.80924.20882.801,124.201,220.801,083.521,114.041,145.421,177.681,210.85
Accounts Payable (%)
Capital Expenditure -358.10-379.50-345.20-226.60-267.90-330.08-339.37-348.93-358.76-368.86
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 63.45
Beta 2.037
Diluted Shares Outstanding 71.20
Cost of Debt
Tax Rate 2.10
After-tax Cost of Debt 2.69%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.414
Total Debt 3,953
Total Equity 4,517.64
Total Capital 8,470.64
Debt Weighting 46.67
Equity Weighting 53.33
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 8,914.809,656.809,9097,132.609,154.709,412.549,677.659,950.2210,230.4710,518.61
EBITDA 965.301,233890-740.301,394.90704.73724.58744.99765.97787.55
EBIT 640.40898.20566.20-1,066.101,081.60358.93369.04379.43390.12401.11
Tax Rate -5.41%3.76%6.01%4.77%2.10%2.25%2.25%2.25%2.25%2.25%
EBIAT 675.04864.38532.15-1,015.251,058.92350.86360.75370.91381.35392.10
Depreciation 324.90334.80323.80325.80313.30345.80355.54365.56375.85386.44
Accounts Receivable --107.4038.7098.50-98.70-17.11-22.04-22.66-23.30-23.95
Inventories --141.10116.70198.6068.60-283.51-45.97-47.26-48.59-49.96
Accounts Payable -34.40-41.40241.4096.60-137.2830.5231.3832.2633.17
Capital Expenditure -358.10-379.50-345.20-226.60-267.90-330.08-339.37-348.93-358.76-368.86
UFCF 641.84605.58624.75-377.551,170.82-71.30339.43348.99358.82368.93
WACC
PV UFCF -66.10291.66277.97264.92252.49
SUM PV UFCF 1,020.94

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.88
Free cash flow (t + 1) 376.31
Terminal Value 6,399.78
Present Value of Terminal Value 4,379.86

Intrinsic Value

Enterprise Value 5,400.80
Net Debt 2,710.50
Equity Value 2,690.30
Shares Outstanding 71.20
Equity Value Per Share 37.79