CPRI Intrinsic Value

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	$207.17
Latest Price	$48.42
Relative Value	77% undervalued

Share results:

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Cash Flow (Billions)

Analysis Parameters

New Ticker

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 3.5%. 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	0.743
2025	0.786	0.734
2026	0.804	0.724
2027	0.821	0.715
2028	0.84	0.706

Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 25.2 billion. This corresponds to a present value of 20.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.62 billion. Adding in the terminal value gives a total present value of 24.1 billion.

There are presently 116.0 million outstanding shares, so the intrinsic value per share is 207.17.

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

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