DCF Tool

ACI

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 $540.13
Latest Price $28.77
Relative Value 95% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 5.2%. 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 2.46
2024 3.78 3.42
2025 5.53 4.75
2026 8.08 6.59
2027 11.8 9.15
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 354 billion. This corresponds to a present value of 261 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 26.4 billion. Adding in the terminal value gives a total present value of 287 billion.

There are presently 532.0 million outstanding shares, so the intrinsic value per share is 540.13.

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

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.