DCF Tool

CRI

Carters Inc – Children's and Infants' Clothing Stores
carter’s, inc. (cri) is a well-established company with history dating back to 1865. we are the largest branded marketer of baby and children’s clothing in the u.s., marketing apparel under 2 of the most recognized and enduring brands in the nation, carter’s and oshkosh b’gosh. our heritage of quality, innovation, and value has earned us the trust of generations of families.
Analysis Results
Intrinsic Value $442.20
Latest Price $68.32
Relative Value 85% undervalued
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Cash Flow (Billions)
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 15.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 15.4%, 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)
2023 0.705 0.652
2024 0.814 0.695
2025 0.939 0.741
2026 1.08 0.79
2027 1.25 0.843
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 20.5 billion. This corresponds to a present value of 12.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.72 billion. Adding in the terminal value gives a total present value of 16.5 billion.

There are presently 37.3 million outstanding shares, so the intrinsic value per share is 442.2.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,188,720,000
Current Cash 211,748,000
Current Liabilities 528,949,000
Current Debt 0
Non-Cash Working Capital (NCWC) 448,023,000
Change in NCWC 249,826,000
EBIT 388,171,000
Tax Provision 66,698,000
Depreciation and Amortization 65,276,000
Capital Expenditure -40,364,000
Unlevered Free Cash Flow 581,168,277
Current Assets 1,913,521,000
Current Cash 984,294,000
Current Liabilities 731,030,000
Current Debt 0
Non-Cash Working Capital (NCWC) 198,197,000
Change in NCWC 147,028,000
EBIT 497,079,000
Tax Provision 98,542,000
Depreciation and Amortization 94,108,000
Capital Expenditure -37,442,000
Unlevered Free Cash Flow 589,013,300
Current Assets 1,946,024,000
Current Cash 1,102,323,000
Current Liabilities 792,532,000
Current Debt 0
Non-Cash Working Capital (NCWC) 51,169,000
Change in NCWC -366,777,000
EBIT 234,111,000
Tax Provision 25,267,000
Depreciation and Amortization 93,999,000
Capital Expenditure -32,871,000
Unlevered Free Cash Flow -115,360,102
Current Assets 1,107,757,000
Current Cash 214,311,000
Current Liabilities 475,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) 417,946,000
Change in NCWC -127,514,000
EBIT 402,672,000
Tax Provision 64,150,000
Depreciation and Amortization 95,954,000
Capital Expenditure -61,419,000
Unlevered Free Cash Flow 230,927,178
Current Assets 1,042,958,000
Current Cash 170,077,000
Current Liabilities 327,421,000
Current Debt 0
Non-Cash Working Capital (NCWC) 545,460,000
Change in NCWC 34,909,000
EBIT 391,433,000
Tax Provision 73,907,000
Depreciation and Amortization 89,653,000
Capital Expenditure -63,783,000
Unlevered Free Cash Flow 370,943,262
Current Assets 1,017,669,000
Current Cash 178,494,000
Current Liabilities 328,624,000
Current Debt 0
Non-Cash Working Capital (NCWC) 510,551,000
Change in NCWC 30,432,000
EBIT 419,568,000
Tax Provision 88,268,000
Depreciation and Amortization 84,412,000
Capital Expenditure -69,473,000
Unlevered Free Cash Flow 370,229,543
Current Assets 1,057,086,000
Current Cash 299,358,000
Current Liabilities 277,609,000
Current Debt 0
Non-Cash Working Capital (NCWC) 480,119,000
Change in NCWC -7,419,000
EBIT 426,558,000
Tax Provision 137,964,000
Depreciation and Amortization 73,441,000
Capital Expenditure -88,556,000
Unlevered Free Cash Flow 255,440,042
Current Assets 1,131,465,000
Current Cash 381,209,000
Current Liabilities 262,718,000
Current Debt 0
Non-Cash Working Capital (NCWC) 487,538,000
Change in NCWC 34,689,000
EBIT 392,857,000
Tax Provision 130,366,000
Depreciation and Amortization 68,399,000
Capital Expenditure -103,497,000
Unlevered Free Cash Flow 253,347,334
Current Assets 1,041,458,000
Current Cash 340,638,000
Current Liabilities 247,971,000
Current Debt 0
Non-Cash Working Capital (NCWC) 452,849,000
Change in NCWC 38,153,000
EBIT 333,345,000
Tax Provision 108,236,000
Depreciation and Amortization 74,924,000
Capital Expenditure -103,453,000
Unlevered Free Cash Flow 223,856,372
Current Assets 970,381,000
Current Cash 286,546,000
Current Liabilities 269,139,000
Current Debt 0
Non-Cash Working Capital (NCWC) 414,696,000
Change in NCWC 83,464,000
EBIT 264,151,000
Tax Provision 89,058,000
Depreciation and Amortization 68,503,000
Capital Expenditure -220,532,000
Unlevered Free Cash Flow 101,285,157
Current Assets 957,703,000
Current Cash 382,236,000
Current Liabilities 244,235,000
Current Debt 0
Non-Cash Working Capital (NCWC) 331,232,000
Change in NCWC -64,668,000
EBIT 261,986,000
Tax Provision 94,241,000
Depreciation and Amortization 39,848,000
Capital Expenditure -83,398,000
Unlevered Free Cash Flow 57,093,400

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