Discounted Cash Flow (DCF) Analysis Unlevered

Qurate Retail, Inc. (QRTEB)

$6.77

-0.68 (-9.13%)
All numbers are in Millions, Currency in USD
Stock DCF: 80.40 | 6.77 | undervalue

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 10,38114,07013,45814,17714,04415,293.5916,654.3718,136.2319,749.9321,507.23
Revenue (%)
EBITDA 2,2191,9943071,9631,5621,920.792,091.702,277.812,480.492,701.19
EBITDA (%)
EBIT 1,4981,357-2991,4011,0251,193.931,300.171,415.851,541.831,679.02
EBIT (%)
Depreciation 721637606562537726.86791.53861.96938.661,022.17
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 330653673806587693.89755.63822.87896.08975.81
Total Cash (%)
Account Receivables 1,7191,8351,8541,9852,0032,191.302,386.272,598.602,829.813,081.60
Account Receivables (%)
Inventories 1,4111,4741,4131,3011,6231,691.501,842.012,005.902,184.382,378.74
Inventories (%)
Accounts Payable 1,1501,2041,0911,3051,4291,441.331,569.581,709.231,861.322,026.93
Accounts Payable (%)
Capital Expenditure -201-275-459-313-431-384.73-418.96-456.24-496.83-541.04
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 6.77
Beta 1.567
Diluted Shares Outstanding 421
Cost of Debt
Tax Rate 46.71
After-tax Cost of Debt 3.57%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.201
Total Debt 6,989
Total Equity 2,850.17
Total Capital 9,839.17
Debt Weighting 71.03
Equity Weighting 28.97
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 10,38114,07013,45814,17714,04415,293.5916,654.3718,136.2319,749.9321,507.23
EBITDA 2,2191,9943071,9631,5621,920.792,091.702,277.812,480.492,701.19
EBIT 1,4981,357-2991,4011,0251,193.931,300.171,415.851,541.831,679.02
Tax Rate 3.44%-3.74%26.69%-14.56%46.71%11.71%11.71%11.71%11.71%11.71%
EBIAT 1,446.511,407.71-219.201,604.95546.241,054.151,147.951,250.091,361.321,482.44
Depreciation 721637606562537726.86791.53861.96938.661,022.17
Accounts Receivable --116-19-131-18-188.30-194.98-212.32-231.22-251.79
Inventories --6361112-322-68.50-150.50-163.90-178.48-194.36
Accounts Payable -54-11321412412.33128.25139.66152.08165.61
Capital Expenditure -201-275-459-313-431-384.73-418.96-456.24-496.83-541.04
UFCF 1,966.511,644.71-143.202,048.95436.241,151.811,303.281,419.251,545.531,683.04
WACC
PV UFCF 1,088.871,164.751,199.081,234.421,270.80
SUM PV UFCF 5,957.92

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.78
Free cash flow (t + 1) 1,716.70
Terminal Value 45,415.44
Present Value of Terminal Value 34,291.44

Intrinsic Value

Enterprise Value 40,249.35
Net Debt 6,402
Equity Value 33,847.35
Shares Outstanding 421
Equity Value Per Share 80.40