DCF Tool


Albertsons Companies Inc – Convenience Stores
Albertsons Companies is a leading food and drug retailer in the United States. The company operates stores across 34 states and the District of Columbia under 20 well-known banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen and Carrs. Albertsons Cos. is committed to helping people across the country live better lives by making a meaningful difference, neighborhood by neighborhood. In 2019 alone, along with the Albertsons Companies Foundation, the company gave $225 million in food and financial support. In 2020, Albertsons Cos. made a $53 million commitment to community hunger relief efforts and a $5 million commitment to organizations supporting social justice. These efforts have helped millions of people in the areas of hunger relief, education, cancer research and treatment, social justice and programs for people with disabilities and veterans' outreach.
Analysis Results
Intrinsic Value $476.14
Latest Price $20.50
Relative Value 96% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 46.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 46.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 2.59 2.45
2024 3.78 3.38
2025 5.53 4.68
2026 8.08 6.46
2027 11.8 8.93
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 321 billion. This corresponds to a present value of 229 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 25.9 billion. Adding in the terminal value gives a total present value of 255 billion.

There are presently 536.0 million outstanding shares, so the intrinsic value per share is 476.14.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 8,366,400,000
Current Cash 2,902,000,000
Current Liabilities 8,348,500,000
Current Debt 828,800,000
Non-Cash Working Capital (NCWC) -2,055,300,000
Change in NCWC -706,500,000
EBIT 2,421,900,000
Tax Provision 479,900,000
Depreciation and Amortization 2,305,200,000
Capital Expenditure -1,606,500,000
Unlevered Free Cash Flow 1,860,506,377
Current Assets 6,988,000,000
Current Cash 1,717,000,000
Current Liabilities 6,832,200,000
Current Debt 212,400,000
Non-Cash Working Capital (NCWC) -1,348,800,000
Change in NCWC -913,000,000
EBIT 1,578,700,000
Tax Provision 278,500,000
Depreciation and Amortization 2,118,400,000
Capital Expenditure -1,630,200,000
Unlevered Free Cash Flow 764,365,181
Current Assets 5,731,300,000
Current Cash 484,200,000
Current Liabilities 5,904,300,000
Current Debt 221,400,000
Non-Cash Working Capital (NCWC) -435,800,000
Change in NCWC -732,700,000
EBIT 952,300,000
Tax Provision 132,800,000
Depreciation and Amortization 2,261,600,000
Capital Expenditure -1,475,100,000
Unlevered Free Cash Flow 795,042,857
Current Assets 6,250,000,000
Current Cash 949,200,000
Current Liabilities 5,152,700,000
Current Debt 148,800,000
Non-Cash Working Capital (NCWC) 296,900,000
Change in NCWC -295,500,000
EBIT 787,300,000
Tax Provision -78,900,000
Depreciation and Amortization 1,738,800,000
Capital Expenditure -1,362,600,000
Unlevered Free Cash Flow 868,000,000

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