DCF Tool

ACI

in 1939, joe albertson, a former safeway district manager, took $5,000 he saved and $7,500 he borrowed from his wife’s aunt bertie to open his first albertsons store in boise, idaho. joe knew the keys of running a really great store meant working hard for the customers: give them the products they want, at a fair price, with lots of tender, loving care. with the merger of albertsons llc and safeway, inc. in 2015, albertsons companies is now one of the largest food and drug retailers in the united states. the company operates more than 2,300 stores across 35 states and the district of columbia under 19 well-known banners including albertsons, safeway, vons, jewel-osco, shaw's, acme, tom thumb, randalls, united supermarkets, pavilions, star market, haggen and carrs. albertsons companies is dedicated to helping people across the country live better lives. in 2015 alone, with the help of our generous customers, albertsons companies and the albertsons companies foundation gave more than $27
Analysis Results
Intrinsic Value $712.39
Latest Price $20.38
Relative Value 97% undervalued
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Cash Flow (Billions)
Analysis Parameters
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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 45.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 45.3%, 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)
2024 3.65 3.49
2025 5.31 4.85
2026 7.72 6.74
2027 11.2 9.36
2028 16.3 13.0
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 489 billion. This corresponds to a present value of 373 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 37.5 billion. Adding in the terminal value gives a total present value of 410 billion.

There are presently 576.0 million outstanding shares, so the intrinsic value per share is 712.39.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,270,400,000
Current Cash 455,800,000
Current Liabilities 8,428,800,000
Current Debt 1,075,700,000
Non-Cash Working Capital (NCWC) -1,538,500,000
Change in NCWC 516,800,000
EBIT 2,159,600,000
Tax Provision 422,000,000
Depreciation and Amortization 2,459,800,000
Capital Expenditure -2,153,900,000
Unlevered Free Cash Flow 2,511,439,137
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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