Discounted Cash Flow (DCF) Analysis Unlevered

Rite Aid Corporation (RAD)

$2.37

-0.17 (-6.69%)

All numbers are in Millions, Currency in USD

Stock DCF: -1,228.73 | 2.37 | 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	21,528.97	21,639.56	21,928.39	24,043.24	24,568.25	25,408.27	26,277	27,175.44	28,104.59	29,065.52
Revenue (%)
EBITDA	1,838.28	240.87	493.37	417.45	-54.97	681.66	704.97	729.07	754	779.78
EBITDA (%)
EBIT	1,452.22	-117.01	165.09	90.32	-350.66	300.12	310.38	321	331.97	343.32
EBIT (%)
Depreciation	386.06	357.88	328.28	327.12	295.69	381.54	394.58	408.08	422.03	436.46
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	447.33	144.35	218.18	160.90	39.72	232.27	240.21	248.43	256.92	265.70
Total Cash (%)
Account Receivables	1,869.10	1,788.71	1,286.79	1,462.44	1,343.50	1,746.40	1,806.11	1,867.87	1,931.73	1,997.78
Account Receivables (%)
Inventories	1,799.54	1,871.94	1,921.60	1,864.89	1,959.39	2,109.09	2,181.20	2,255.78	2,332.91	2,412.67
Inventories (%)
Accounts Payable	1,651.36	1,618.58	1,484.08	1,437.42	1,571.26	1,742.60	1,802.18	1,863.80	1,927.53	1,993.43
Accounts Payable (%)
Capital Expenditure	-214.76	-244.69	-214.39	-224.94	-220.71	-251.03	-259.61	-268.49	-277.67	-287.16
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 2.37
Beta	1.195
Diluted Shares Outstanding	54.05
Cost of Debt
Tax Rate	0.70
After-tax Cost of Debt	3.21%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.140
Total Debt	5,926.10
Total Equity	128.11
Total Capital	6,054.21
Debt Weighting	97.88
Equity Weighting	2.12
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	21,528.97	21,639.56	21,928.39	24,043.24	24,568.25	25,408.27	26,277	27,175.44	28,104.59	29,065.52
EBITDA	1,838.28	240.87	493.37	417.45	-54.97	681.66	704.97	729.07	754	779.78
EBIT	1,452.22	-117.01	165.09	90.32	-350.66	300.12	310.38	321	331.97	343.32
Tax Rate	2,266.66%	28.37%	-454.05%	24.39%	0.70%	373.21%	373.21%	373.21%	373.21%	373.21%
EBIAT	-31,464.71	-83.81	914.69	68.30	-348.21	-819.97	-848	-877	-906.98	-937.99
Depreciation	386.06	357.88	328.28	327.12	295.69	381.54	394.58	408.08	422.03	436.46
Accounts Receivable	-	80.39	501.93	-175.66	118.94	-402.91	-59.71	-61.75	-63.86	-66.05
Inventories	-	-72.40	-49.66	56.71	-94.50	-149.70	-72.11	-74.58	-77.13	-79.76
Accounts Payable	-	-32.78	-134.50	-46.66	133.84	171.34	59.58	61.62	63.73	65.90
Capital Expenditure	-214.76	-244.69	-214.39	-224.94	-220.71	-251.03	-259.61	-268.49	-277.67	-287.16
UFCF	-31,293.41	4.59	1,346.34	4.88	-114.95	-1,070.73	-785.27	-812.12	-839.89	-868.61
WACC
PV UFCF						-1,036.22	-735.47	-736.11	-736.74	-737.38
SUM PV UFCF										-3,981.92

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.33
Free cash flow (t + 1)	-885.98
Terminal Value	-66,614.87
Present Value of Terminal Value	-56,550.84

Intrinsic Value

Enterprise Value	-60,532.76
Net Debt	5,886.38
Equity Value	-66,419.14
Shares Outstanding	54.05
Equity Value Per Share	-1,228.73