DCF Tool

BKE

Buckle, Inc. – Family Clothing Stores
Offering a unique mix of high-quality,on-trend apparel, accessories, and footwear, Buckle caters to fashion-conscious young men and women. Known as a denim destination, each store carries a wide selection of fits, styles, and finishes from leading denim brands, including the Company's exclusive brand, BKE. Headquartered in Kearney, Nebraska, Buckle currently operates 445 retail stores in 42 states which includes the closing of one store during fiscal December. The Company operated 448 stores in 42 states as of January 7, 2020.
Analysis Results
Intrinsic Value $10.21
Latest Price $31.93
Relative Value 213% 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 -9.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -9.6%, 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 (million) Present value (million)
2023 66.8 60.6
2024 60.4 49.6
2025 54.7 40.6
2026 49.4 33.3
2027 44.7 27.3
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 543 million. This corresponds to a present value of 300 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 211 million. Adding in the terminal value gives a total present value of 512 million.

There are presently 50.1 million outstanding shares, so the intrinsic value per share is 10.21.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 391,206,000
Current Cash 266,896,000
Current Liabilities 248,541,000
Current Debt 0
Non-Cash Working Capital (NCWC) -124,231,000
Change in NCWC -32,948,000
EBIT 335,499,000
Tax Provision 82,935,000
Depreciation and Amortization 18,689,000
Capital Expenditure -19,100,000
Unlevered Free Cash Flow 219,758,955
Current Assets 437,224,000
Current Cash 322,148,000
Current Liabilities 206,359,000
Current Debt 0
Non-Cash Working Capital (NCWC) -91,283,000
Change in NCWC -63,971,000
EBIT 168,022,000
Tax Provision 40,808,000
Depreciation and Amortization 20,863,000
Capital Expenditure -7,657,000
Unlevered Free Cash Flow 77,147,247
Current Assets 378,830,000
Current Cash 233,501,000
Current Liabilities 172,641,000
Current Debt 0
Non-Cash Working Capital (NCWC) -27,312,000
Change in NCWC -87,509,000
EBIT 131,497,000
Tax Provision 33,278,000
Depreciation and Amortization 23,789,000
Capital Expenditure -7,322,000
Unlevered Free Cash Flow 28,677,696
Current Assets 370,432,000
Current Cash 220,017,000
Current Liabilities 90,218,000
Current Debt 0
Non-Cash Working Capital (NCWC) 60,197,000
Change in NCWC 13,438,000
EBIT 120,928,000
Tax Provision 31,036,000
Depreciation and Amortization 26,848,000
Capital Expenditure -10,021,000
Unlevered Free Cash Flow 121,557,791
Current Assets 360,584,000
Current Cash 215,919,000
Current Liabilities 97,906,000
Current Debt 0
Non-Cash Working Capital (NCWC) 46,759,000
Change in NCWC 5,448,000
EBIT 134,078,000
Tax Provision 49,778,000
Depreciation and Amortization 30,745,000
Capital Expenditure -13,462,000
Unlevered Free Cash Flow 108,960,595
Current Assets 386,457,000
Current Cash 246,530,000
Current Liabilities 98,616,000
Current Debt 0
Non-Cash Working Capital (NCWC) 41,311,000
Change in NCWC -16,310,000
EBIT 152,760,000
Tax Provision 58,310,000
Depreciation and Amortization 32,787,000
Capital Expenditure -31,663,000
Unlevered Free Cash Flow 80,574,072
Current Assets 362,897,000
Current Cash 197,650,000
Current Liabilities 107,626,000
Current Debt 0
Non-Cash Working Capital (NCWC) 57,621,000
Change in NCWC 14,868,000
EBIT 229,588,000
Tax Provision 87,541,000
Depreciation and Amortization 32,142,000
Capital Expenditure -34,578,000
Unlevered Free Cash Flow 156,430,949
Current Assets 324,589,000
Current Cash 159,565,000
Current Liabilities 122,271,000
Current Debt 0
Non-Cash Working Capital (NCWC) 42,753,000
Change in NCWC 9,062,000
EBIT 256,973,000
Tax Provision 97,132,000
Depreciation and Amortization 31,679,000
Capital Expenditure -45,454,000
Unlevered Free Cash Flow 156,146,461
Current Assets 342,137,000
Current Cash 185,065,000
Current Liabilities 123,381,000
Current Debt 0
Non-Cash Working Capital (NCWC) 33,691,000
Change in NCWC 29,796,000
EBIT 256,994,000
Tax Provision 97,872,000
Depreciation and Amortization 32,631,000
Capital Expenditure -28,811,000
Unlevered Free Cash Flow 194,038,921
Current Assets 276,873,000
Current Cash 144,022,000
Current Liabilities 128,956,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,895,000
Change in NCWC -9,892,000
EBIT 258,175,000
Tax Provision 97,394,000
Depreciation and Amortization 33,834,000
Capital Expenditure -30,297,000
Unlevered Free Cash Flow 155,737,493

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