Discounted Cash Flow (DCF) Analysis Unlevered

Sprouts Farmers Market, Inc. (SFM)

$33.705

+0.42 (+1.28%)
All numbers are in Millions, Currency in USD
Stock DCF: 112.69 | 33.705 | undervalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 5,207.345,634.846,097.436,5987,139.677,725.808,360.069,046.389,789.0510,592.6811,462.30
Revenue (%)
EBITDA 333.98421.44423.55458.33495.95536.67580.73628.40679.99735.81796.22
EBITDA (%)
EBIT 223.23216.80247.99268.35290.38314.22340.02367.93398.13430.82466.19
EBIT (%)
Depreciation 110.75204.65175.56189.98205.57222.45240.71260.47281.86304.99330.03
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Projected
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 1.5985.3147.0950.9555.1459.6664.5669.8675.6081.8088.52
Total Cash (%)
Account Receivables 40.9815.7132.4935.1638.0541.1744.5548.2152.1656.4561.08
Account Receivables (%)
Inventories 264.37275.98304.09329.06356.07385.31416.94451.17488.21528.29571.66
Inventories (%)
Accounts Payable 120.26122.84136.87148.11160.27173.43187.66203.07219.74237.78257.30
Accounts Payable (%)
Capital Expenditure -177.08-183.23-202.81-219.46-237.48-256.98-278.07-300.90-325.60-352.33-381.26
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 33.705
Beta 0.387
Diluted Shares Outstanding 109.14
Cost of Debt
Tax Rate 25.23
After-tax Cost of Debt 0.44%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.322
Total Debt 1,540.67
Total Equity 3,678.53
Total Capital 5,219.20
Debt Weighting 29.52
Equity Weighting 70.48
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 5,207.345,634.846,097.436,5987,139.677,725.808,360.069,046.389,789.0510,592.6811,462.30
EBITDA 333.98421.44423.55458.33495.95536.67580.73628.40679.99735.81796.22
EBIT 223.23216.80247.99268.35290.38314.22340.02367.93398.13430.82466.19
Tax Rate 19.03%23.72%23.20%23.73%24.27%25.23%23.20%23.20%23.20%23.20%23.20%
EBIAT 180.75165.36190.46204.67219.91234.93261.14282.58305.78330.88358.05
Depreciation 110.75204.65175.56189.98205.57222.45240.71260.47281.86304.99330.03
Accounts Receivable -25.26-16.78-2.67-2.89-3.12-3.38-3.66-3.96-4.28-4.63
Inventories --11.61-28.12-24.96-27.01-29.23-31.63-34.23-37.04-40.08-43.37
Accounts Payable -2.5714.0311.2412.1613.1614.2415.4116.6718.0419.52
Capital Expenditure -177.08-183.23-202.81-121.97-102.38-124.01-278.07-300.90-325.60-352.33-381.26
UFCF 114.42203132.35158.79170.26181.20203.01219.67237.71257.22278.34
WACC
PV UFCF 142.82164.95170.26174.43188.12195.96204.13212.64221.50
SUM PV UFCF 1,062.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.88
Free cash flow (t + 1) 283.90
Terminal Value 15,101.24
Present Value of Terminal Value 12,483.97

Intrinsic Value

Enterprise Value 13,546
Net Debt 1,247.44
Equity Value 12,298.57
Shares Outstanding 109.14
Equity Value Per Share 112.69