Discounted Cash Flow (DCF) Analysis Unlevered

Tapestry, Inc. (TPR)

$28.675

+0.52 (+1.83%)

All numbers are in Millions, Currency in USD

Stock DCF: 29.99 | 28.675 | undervalue

Operating Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	6,027.10	4,961.40	5,746.30	6,684.50	6,660.90	6,895.90	7,139.19	7,391.07	7,651.83	7,921.80
Revenue (%)
EBITDA	814.10	-564.10	1,187.40	1,354.70	1,352.90	874.11	904.94	936.87	969.93	1,004.15
EBITDA (%)
EBIT	545.90	-812.40	968.70	1,159.40	1,170.70	613.20	634.83	657.23	680.42	704.42
EBIT (%)
Depreciation	268.20	248.30	218.70	195.30	182.20	260.91	270.11	279.64	289.51	299.72
Depreciation (%)

Balance Sheet Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Total Cash	1,233.80	1,434.40	2,015.80	953.20	741.50	1,515.08	1,568.54	1,623.88	1,681.17	1,740.48
Total Cash (%)
Account Receivables	298.10	193.30	200.20	252.30	211.50	265.85	275.23	284.94	294.99	305.40
Account Receivables (%)
Inventories	778.30	736.90	734.80	994.20	919.50	954.82	988.51	1,023.38	1,059.49	1,096.87
Inventories (%)
Accounts Payable	243.60	130.80	445.20	520.70	416.90	392.71	406.57	420.91	435.76	451.13
Accounts Payable (%)
Capital Expenditure	-274.20	-205.40	-116	-93.90	-184.20	-205.20	-212.44	-219.93	-227.69	-235.72
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 28.675
Beta	1.507
Diluted Shares Outstanding	241.30
Cost of Debt
Tax Rate	18.12
After-tax Cost of Debt	0.69%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.641
Total Debt	3,292
Total Equity	6,919.28
Total Capital	10,211.28
Debt Weighting	32.24
Equity Weighting	67.76
Wacc

Build Up Free Cash

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	6,027.10	4,961.40	5,746.30	6,684.50	6,660.90	6,895.90	7,139.19	7,391.07	7,651.83	7,921.80
EBITDA	814.10	-564.10	1,187.40	1,354.70	1,352.90	874.11	904.94	936.87	969.93	1,004.15
EBIT	545.90	-812.40	968.70	1,159.40	1,170.70	613.20	634.83	657.23	680.42	704.42
Tax Rate	16.03%	-4.47%	7.03%	18.21%	18.12%	10.98%	10.98%	10.98%	10.98%	10.98%
EBIAT	458.41	-848.71	900.58	948.23	958.60	545.84	565.10	585.04	605.68	627.05
Depreciation	268.20	248.30	218.70	195.30	182.20	260.91	270.11	279.64	289.51	299.72
Accounts Receivable	-	104.80	-6.90	-52.10	40.80	-54.35	-9.38	-9.71	-10.05	-10.41
Inventories	-	41.40	2.10	-259.40	74.70	-35.32	-33.69	-34.88	-36.11	-37.38
Accounts Payable	-	-112.80	314.40	75.50	-103.80	-24.19	13.86	14.34	14.85	15.37
Capital Expenditure	-274.20	-205.40	-116	-93.90	-184.20	-205.20	-212.44	-219.93	-227.69	-235.72
UFCF	452.41	-772.41	1,312.88	813.63	968.30	487.70	593.57	614.51	636.19	658.63
WACC
PV UFCF						451.11	507.85	486.33	465.72	445.98
SUM PV UFCF										2,356.99

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.11
Free cash flow (t + 1)	671.80
Terminal Value	10,995.17
Present Value of Terminal Value	7,445.14

Intrinsic Value

Enterprise Value	9,802.12
Net Debt	2,565.90
Equity Value	7,236.22
Shares Outstanding	241.30
Equity Value Per Share	29.99