DCF Tool

BJ

BJ`s Wholesale Club Holdings Inc – All Other General Merchandise Stores
Headquartered in Westborough, Massachusetts, BJ's Wholesale Club Holdings, Inc. is a leading operator of membership warehouse clubs in the Eastern United States. The company currently operates 219 clubs and 149 BJ's GasĀ® locations in 17 states.
Analysis Results
Intrinsic Value $10.60
Latest Price $69.30
Relative Value 554% overvalued
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Cash Flow (Millions)
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 -12.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -12.2%, 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 (million) Present value (million)
2023 130 121
2024 114 99.3
2025 100 81.4
2026 88.0 66.7
2027 77.3 54.7
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1530 million. This corresponds to a present value of 1010 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 423 million. Adding in the terminal value gives a total present value of 1430 million.

There are presently 135.0 million outstanding shares, so the intrinsic value per share is 10.6.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,517,056,000
Current Cash 45,436,000
Current Liabilities 2,002,481,000
Current Debt 0
Non-Cash Working Capital (NCWC) -530,861,000
Change in NCWC -186,712,000
EBIT 617,323,000
Tax Provision 131,119,000
Depreciation and Amortization 180,548,000
Capital Expenditure -323,591,000
Unlevered Free Cash Flow 142,477,802
Current Assets 1,470,581,000
Current Cash 43,518,000
Current Liabilities 2,031,212,000
Current Debt 260,000,000
Non-Cash Working Capital (NCWC) -344,149,000
Change in NCWC -238,426,000
EBIT 642,392,000
Tax Provision 136,825,000
Depreciation and Amortization 167,454,000
Capital Expenditure -218,333,000
Unlevered Free Cash Flow 195,570,543
Current Assets 1,360,020,000
Current Cash 30,204,000
Current Liabilities 1,801,416,000
Current Debt 365,877,000
Non-Cash Working Capital (NCWC) -105,723,000
Change in NCWC -124,572,000
EBIT 352,199,000
Tax Provision 56,212,000
Depreciation and Amortization 157,000,000
Capital Expenditure -196,901,000
Unlevered Free Cash Flow 106,577,123
Current Assets 1,337,206,000
Current Cash 27,146,000
Current Liabilities 1,577,688,000
Current Debt 286,477,000
Non-Cash Working Capital (NCWC) 18,849,000
Change in NCWC -68,964,000
EBIT 303,453,000
Tax Provision 11,826,000
Depreciation and Amortization 162,223,000
Capital Expenditure -145,913,000
Unlevered Free Cash Flow 224,966,241
Current Assets 1,336,604,000
Current Cash 34,954,000
Current Liabilities 1,469,587,000
Current Debt 255,750,000
Non-Cash Working Capital (NCWC) 87,813,000
Change in NCWC -5,077,000
EBIT 228,310,000
Tax Provision -2,632,000
Depreciation and Amortization 164,061,000
Capital Expenditure -137,466,000
Unlevered Free Cash Flow 249,828,000

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