DCF Tool

CPRI

Capri Holdings Ltd – All Other Miscellaneous Textile Product Mills
capri holdings limited designs, markets, distributes, and retails branded women's and men's apparel, footwear, and accessories in the united states, canada, latin america, europe, the middle east, africa, and asia. the company's versace segment offers ready-to-wear, accessories, footwear, and home furnishings through a distribution network, including boutiques; and department and specialty stores, as well as through versace e-commerce sites. it also licenses versace brand name and trademarks to third parties to retail and/or wholesale its products; and has licensing agreements to the manufacture and sale of jeans, fragrances, watches, and eyewear. as of march 28, 2020, this segment operated 206 retail stores, including concessions; and 824 wholesale doors. its jimmy choo segment sells luxury footwear, handbags, and small leather goods through directly operated jimmy choo stores; and jimmy choo e-commerce sites. it also licenses jimmy choo brand name and trademarks to third parties to r
Analysis Results
Intrinsic Value $175.60
Latest Price $37.87
Relative Value 78% 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 2.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 2.2%, 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)
2024 0.769 0.728
2025 0.786 0.705
2026 0.804 0.682
2027 0.821 0.66
2028 0.84 0.639
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 23.7 billion. This corresponds to a present value of 17.1 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.41 billion. Adding in the terminal value gives a total present value of 20.5 billion.

There are presently 117.0 million outstanding shares, so the intrinsic value per share is 175.6.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,870,000,000
Current Cash 249,000,000
Current Liabilities 1,450,000,000
Current Debt 5,000,000
Non-Cash Working Capital (NCWC) 176,000,000
Change in NCWC -9,000,000
EBIT 837,000,000
Tax Provision 29,000,000
Depreciation and Amortization 179,000,000
Capital Expenditure -226,000,000
Unlevered Free Cash Flow 743,541,666
Current Assets 1,891,000,000
Current Cash 169,000,000
Current Liabilities 1,566,000,000
Current Debt 29,000,000
Non-Cash Working Capital (NCWC) 185,000,000
Change in NCWC 369,000,000
EBIT 1,018,000,000
Tax Provision 92,000,000
Depreciation and Amortization 193,000,000
Capital Expenditure -131,000,000
Unlevered Free Cash Flow 1,346,643,715
Current Assets 1,546,000,000
Current Cash 232,000,000
Current Liabilities 1,621,000,000
Current Debt 123,000,000
Non-Cash Working Capital (NCWC) -184,000,000
Change in NCWC -252,000,000
EBIT 367,000,000
Tax Provision 66,000,000
Depreciation and Amortization 212,000,000
Capital Expenditure -111,000,000
Unlevered Free Cash Flow 150,000,000
Current Assets 1,894,000,000
Current Cash 592,000,000
Current Liabilities 1,401,000,000
Current Debt 167,000,000
Non-Cash Working Capital (NCWC) 68,000,000
Change in NCWC -577,000,000
EBIT 558,000,000
Tax Provision 10,000,000
Depreciation and Amortization 249,000,000
Capital Expenditure -223,000,000
Unlevered Free Cash Flow 7,000,000
Current Assets 1,729,000,000
Current Cash 172,000,000
Current Liabilities 1,542,000,000
Current Debt 630,000,000
Non-Cash Working Capital (NCWC) 645,000,000
Change in NCWC 306,300,000
EBIT 880,000,000
Tax Provision 79,000,000
Depreciation and Amortization 225,000,000
Capital Expenditure -184,000,000
Unlevered Free Cash Flow 1,115,351,529
Current Assets 1,262,100,000
Current Cash 163,100,000
Current Liabilities 960,300,000
Current Debt 200,000,000
Non-Cash Working Capital (NCWC) 338,700,000
Change in NCWC -165,600,000
EBIT 883,900,000
Tax Provision 149,700,000
Depreciation and Amortization 208,600,000
Capital Expenditure -123,600,000
Unlevered Free Cash Flow 624,923,308
Current Assets 1,164,700,000
Current Cash 227,700,000
Current Liabilities 565,800,000
Current Debt 133,100,000
Non-Cash Working Capital (NCWC) 504,300,000
Change in NCWC -28,000,000
EBIT 889,100,000
Tax Provision 137,100,000
Depreciation and Amortization 219,800,000
Capital Expenditure -170,300,000
Unlevered Free Cash Flow 733,580,525
Current Assets 1,669,800,000
Current Cash 702,000,000
Current Liabilities 435,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) 532,300,000
Change in NCWC -176,128,000
EBIT 1,186,000,000
Tax Provision 334,600,000
Depreciation and Amortization 183,200,000
Capital Expenditure -380,600,000
Unlevered Free Cash Flow 473,961,721
Current Assets 2,017,431,000
Current Cash 978,922,000
Current Liabilities 330,081,000
Current Debt 0
Non-Cash Working Capital (NCWC) 708,428,000
Change in NCWC 194,774,000
EBIT 1,257,925,000
Tax Provision 374,800,000
Depreciation and Amortization 138,425,000
Capital Expenditure -385,433,000
Unlevered Free Cash Flow 830,263,658
Current Assets 1,777,169,000
Current Cash 955,145,000
Current Liabilities 308,370,000
Current Debt 0
Non-Cash Working Capital (NCWC) 513,654,000
Change in NCWC 161,224,000
EBIT 1,009,503,000
Tax Provision 346,162,000
Depreciation and Amortization 79,654,000
Capital Expenditure -213,560,000
Unlevered Free Cash Flow 690,021,399
Current Assets 989,189,000
Current Cash 472,511,000
Current Liabilities 164,248,000
Current Debt 0
Non-Cash Working Capital (NCWC) 352,430,000
Change in NCWC 137,053,000
EBIT 630,739,000
Tax Provision 229,525,000
Depreciation and Amortization 54,291,000
Capital Expenditure -129,867,000
Unlevered Free Cash Flow 461,369,028

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.