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    DCF BofA - VF

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    johnthejoker212

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    DCF BofA - VF

    Uploaded by

    johnthejoker212
    2 views1 page

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    DCF BofA_vf

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    2 views1 page

    DCF BofA - VF

    Uploaded by

    johnthejoker212

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
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    Simple Discounted Cash Flow Model

    DCF Analysis
    Year 1 2 3 4 5
    2022E 2023E 2024E 2025E 2026E
    Revenue 13.6 billion 14.28 billion 14.99 billion 15.74 billion 16.53 billion
    % Growth 5% 5% 5% 5%

    EBITDA 5.40 billion 5.75 billion 6.15 billion 6.55 billion 6.94 billion
    % Margin 40% 40% 41% 41% 42%

    Cash Taxes Calculation


    EBITDA 5.40 billion 5.75 billion 6.15 billion 6.55 billion 6.94 billion
    Less: Depreciation and Amortization 0.095 billion 0.1 billion 0.095 billion 0.1 billion 0.095 billion
    EBIT $5.305 $5.65 $6.045 $6.44 $6.825
    Cash Taxes 40.0% $2.122 $2.26 $2.418 $2.576 $2.73

    Capital Expenditures

    Net Working Capital $0.0 0.714 billion 0.75 billion $0.79 $0.83
    Change in NWC $0.0 $0.714 $0.036 $0.04 $0.04

    EBITDA 5.40 billion 5.75 billion 6.15 billion 6.55 billion 6.94 billion
    Less: Cash Taxes 2.122 2.26 2.418 2.576 2.73
    Less: Changes in W/C 0.0 0.7 0.8 0.79 0.8
    Less: Capital Expenditures 0.1 0.1 0.1 0.1 0.1
    Total Unlevered Free Cash Flow $3.2 $3.1 $3.6 $3.7 $4.0
    Total Discounted Unlevered Free Cash Flow $0.9 $0.8 $0.7 $0.7 $0.6
    PV of Unlevered FCF $3.0 $2.6 $2.8 $2.6 $2.7

    Implied Enterprise / Equity Valuation from DCF Analysis

    Forward (2026E) EBITDA 6.94 billion


    Terminal Multiple 12.0x
    Terminal Value 83.28 billion
    Present Value of Terminal Value 57.16 billion

    PV of Unlevered FCF $2.7


    Plus: PV of Terminal Value 57.16 billion
    Implied TEV / Present Value 59.86 billion
    Plus: Cash 9.2 billion
    Less: Debt 0.05 billion
    Implied Equity Value 69.01 billion
    Shares Outstanding 1 billion
    Implied Share Price Valuation $69.01

    Sensitivities

    Enterprise Value ($M)

    Terminal Multiple
    11.5x 12.0x 12.5x 13.0x 13.5x
    7.50% $X $Y $Z $A $B
    8.00% $X1 $Y1 $Z1 $A1 $B1
    WACC 8.50% $69.01B $70.50B $72.00B $73.50B $75.00B
    9.00% $X2 $Y2 $Z2 $A2 $B2
    9.50% $X3 $Y3 $Z3 $A3 $B3

    Implied Share Price

    Terminal Multiple
    WACC /
    Terminal 11.5x 12.0x 12.5x 13.0x 13.5x
    Multiple
    7.50% $X $Y $Z $A $B
    8.00% $X1 $Y1 $Z1 $A1 $B1
    WACC 8.50% $69.01 $70.50 $72.00 $73.50 $75.00
    9.00% $X2 $Y2 $Z2 $A2 $B2
    9.50% $X3 $Y3 $Z3 $A3 $B3

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