DCF Tool

AZO

Autozone Inc. – Automotive Parts and Accessories Stores
AutoZone is the leading retailer and a leading distributor of automotive replacement parts and accessories in the Americas. Each AutoZone store carries an extensive product line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. Many stores also have a commercial sales program that provides commercial credit and prompt delivery of parts and other products to local, regional and national repair garages, dealers, service stations and public sector accounts.
Analysis Results
Intrinsic Value $1,707.94
Latest Price $2,141.93
Relative Value 25% overvalued
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 4.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.6%, 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)
2022 1.44 1.35
2023 1.51 1.33
2024 1.58 1.3
2025 1.65 1.28
2026 1.73 1.26
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 39.1 billion. This corresponds to a present value of 26.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.53 billion. Adding in the terminal value gives a total present value of 33.3 billion.

There are presently 19.5 million outstanding shares, so the intrinsic value per share is 1707.94.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 12,830,606,000
Current Cash 2,434,684,000
Current Liabilities 14,739,508,000
Current Debt 179,864,000
Non-Cash Working Capital (NCWC) -4,163,722,000
Change in NCWC -2,933,068,000
EBIT 5,889,054,000
Tax Provision 1,157,752,000
Depreciation and Amortization 815,366,000
Capital Expenditure -1,243,534,000
Unlevered Free Cash Flow 1,287,804,751
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

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.