DCF Tool

AZO

Autozone Inc. – Automotive Parts and Accessories Stores
autozone is the nation's leading retailer and a leading distributor of automotive replacement parts and accessories with more than 4,400 stores in the us, puerto rico, and mexico. each store carries an extensive line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured hard parts, maintenance items and accessories. since opening its first store in forrest city, ark. on july 4, 1979, the company has joined the new york stock exchange (nyse: azo) and earned a spot in the fortune 500.
Analysis Results
Intrinsic Value $2,873.88
Latest Price $2,570.27
Relative Value 11% 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 7.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 7.7%, 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 1.89 1.78
2024 2.03 1.8
2025 2.19 1.83
2026 2.36 1.85
2027 2.54 1.88
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 61.7 billion. This corresponds to a present value of 43.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 9.15 billion. Adding in the terminal value gives a total present value of 52.2 billion.

There are presently 18.2 million outstanding shares, so the intrinsic value per share is 2873.88.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,627,984,000
Current Cash 314,148,000
Current Liabilities 8,588,393,000
Current Debt 92,877,000
Non-Cash Working Capital (NCWC) -2,181,680,000
Change in NCWC -99,819,000
EBIT 3,270,729,000
Tax Provision 649,487,000
Depreciation and Amortization 442,223,000
Capital Expenditure -672,391,000
Unlevered Free Cash Flow 2,250,831,904
Current Assets 6,415,303,000
Current Cash 1,217,342,000
Current Liabilities 7,369,754,000
Current Debt 89,932,000
Non-Cash Working Capital (NCWC) -2,081,861,000
Change in NCWC -851,207,000
EBIT 2,944,527,000
Tax Provision 578,876,000
Depreciation and Amortization 407,683,000
Capital Expenditure -621,767,000
Unlevered Free Cash Flow 1,259,229,375
Current Assets 6,811,872,000
Current Cash 1,826,933,000
Current Liabilities 6,283,091,000
Current Debt 67,498,000
Non-Cash Working Capital (NCWC) -1,230,654,000
Change in NCWC -559,186,000
EBIT 2,417,679,000
Tax Provision 483,542,000
Depreciation and Amortization 397,466,000
Capital Expenditure -457,736,000
Unlevered Free Cash Flow 1,270,795,995
Current Assets 5,028,685,000
Current Cash 244,258,000
Current Liabilities 5,512,141,000
Current Debt 56,246,000
Non-Cash Working Capital (NCWC) -671,468,000
Change in NCWC -53,722,000
EBIT 2,216,137,000
Tax Provision 414,112,000
Depreciation and Amortization 369,957,000
Capital Expenditure -496,050,000
Unlevered Free Cash Flow 1,584,535,451
Current Assets 4,635,869,000
Current Cash 277,224,000
Current Liabilities 5,028,681,000
Current Debt 52,290,000
Non-Cash Working Capital (NCWC) -617,746,000
Change in NCWC -198,991,000
EBIT 1,810,856,000
Tax Provision 298,793,000
Depreciation and Amortization 345,084,000
Capital Expenditure -521,788,000
Unlevered Free Cash Flow 1,104,499,441
Current Assets 4,611,255,000
Current Cash 311,843,000
Current Liabilities 4,766,301,000
Current Debt 48,134,000
Non-Cash Working Capital (NCWC) -418,755,000
Change in NCWC 184,218,000
EBIT 2,080,069,000
Tax Provision 644,620,000
Depreciation and Amortization 323,051,000
Capital Expenditure -553,832,000
Unlevered Free Cash Flow 1,337,135,322
Current Assets 4,239,573,000
Current Cash 197,060,000
Current Liabilities 4,690,320,000
Current Debt 44,834,000
Non-Cash Working Capital (NCWC) -602,973,000
Change in NCWC 283,177,000
EBIT 2,060,395,000
Tax Provision 671,707,000
Depreciation and Amortization 297,397,000
Capital Expenditure -498,791,000
Unlevered Free Cash Flow 1,418,608,378
Current Assets 3,970,294,000
Current Cash 184,099,000
Current Liabilities 4,712,873,000
Current Debt 40,528,000
Non-Cash Working Capital (NCWC) -886,150,000
Change in NCWC -8,198,000
EBIT 1,953,051,000
Tax Provision 642,371,000
Depreciation and Amortization 269,919,000
Capital Expenditure -490,579,000
Unlevered Free Cash Flow 1,028,212,209
Current Assets 3,580,612,000
Current Cash 134,885,000
Current Liabilities 4,541,094,000
Current Debt 217,415,000
Non-Cash Working Capital (NCWC) -877,952,000
Change in NCWC -34,193,000
EBIT 1,830,223,000
Tax Provision 592,970,000
Depreciation and Amortization 251,267,000
Capital Expenditure -449,228,000
Unlevered Free Cash Flow 945,360,637
Current Assets 3,278,013,000
Current Cash 158,601,000
Current Liabilities 4,169,150,000
Current Debt 205,979,000
Non-Cash Working Capital (NCWC) -843,759,000
Change in NCWC -121,228,000
EBIT 1,773,098,000
Tax Provision 571,203,000
Depreciation and Amortization 227,251,000
Capital Expenditure -414,451,000
Unlevered Free Cash Flow 826,759,978
Current Assets 2,978,946,000
Current Cash 125,608,000
Current Liabilities 3,655,592,000
Current Debt 79,723,000
Non-Cash Working Capital (NCWC) -722,531,000
Change in NCWC -33,960,000
EBIT 1,628,891,000
Tax Provision 522,613,000
Depreciation and Amortization 211,831,000
Capital Expenditure -378,054,000
Unlevered Free Cash Flow 842,825,126

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