DCF Tool

DG

Dollar General Corp. – All Other General Merchandise Stores
dollar general corporation has been delivering value to shoppers for over 75 years. dollar general helps shoppers save time. save money. every day!® by offering products that are frequently used and replenished, such as food, snacks, health and beauty aids, cleaning supplies, basic apparel, house wares and seasonal items at low everyday prices in convenient neighborhood locations. dollar general operates 12,198 stores in 43 states as of july 31, 2015. in addition to high quality private brands, dollar general sells products from america's most-trusted manufacturers such as clorox, energizer, procter & gamble, hanes, coca-cola, mars, unilever, nestle, kimberly-clark, kellogg's, general mills, and pepsico. for more information on dollar general, please visit www.dollargeneral.com. in dollar general, you'll find a company that embraces substance and simplicity. our mission is to serve others. and, we think our customers are best served when we keep it real and keep it simple. dollar g
Analysis Results
Intrinsic Value $553.81
Latest Price $159.32
Relative Value 71% 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 13.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.3%, 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 2.96 2.81
2025 3.35 3.01
2026 3.8 3.24
2027 4.3 3.48
2028 4.87 3.74
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 144 billion. This corresponds to a present value of 105 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 16.3 billion. Adding in the terminal value gives a total present value of 121 billion.

There are presently 219.0 million outstanding shares, so the intrinsic value per share is 553.81.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 7,581,009,000
Current Cash 381,576,000
Current Liabilities 5,887,768,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,311,665,000
Change in NCWC 1,332,008,000
EBIT 3,328,302,000
Tax Provision 700,625,000
Depreciation and Amortization 724,877,000
Capital Expenditure -1,560,582,000
Unlevered Free Cash Flow 3,076,391,846
Current Assets 6,303,843,000
Current Cash 344,829,000
Current Liabilities 5,979,357,000
Current Debt 0
Non-Cash Working Capital (NCWC) -20,343,000
Change in NCWC 152,798,000
EBIT 3,220,675,000
Tax Provision 663,917,000
Depreciation and Amortization 641,316,000
Capital Expenditure -1,070,460,000
Unlevered Free Cash Flow 2,246,269,296
Current Assets 6,914,219,000
Current Cash 1,376,577,000
Current Liabilities 5,710,783,000
Current Debt 0
Non-Cash Working Capital (NCWC) -173,141,000
Change in NCWC -567,684,000
EBIT 3,554,765,000
Tax Provision 749,330,000
Depreciation and Amortization 574,237,000
Capital Expenditure -1,027,963,000
Unlevered Free Cash Flow 1,750,924,114
Current Assets 5,177,868,000
Current Cash 240,320,000
Current Liabilities 4,543,560,000
Current Debt 555,000
Non-Cash Working Capital (NCWC) 394,543,000
Change in NCWC -1,019,083,000
EBIT 2,302,304,000
Tax Provision 489,175,000
Depreciation and Amortization 504,804,000
Capital Expenditure -784,843,000
Unlevered Free Cash Flow 491,661,714
Current Assets 4,663,020,000
Current Cash 235,487,000
Current Liabilities 3,015,857,000
Current Debt 1,950,000
Non-Cash Working Capital (NCWC) 1,413,626,000
Change in NCWC -3,252,000
EBIT 2,116,306,000
Tax Provision 425,944,000
Depreciation and Amortization 454,134,000
Capital Expenditure -734,380,000
Unlevered Free Cash Flow 1,385,541,607
Current Assets 4,247,852,000
Current Cash 267,441,000
Current Liabilities 2,964,878,000
Current Debt 401,345,000
Non-Cash Working Capital (NCWC) 1,416,878,000
Change in NCWC 48,877,000
EBIT 2,007,818,000
Tax Provision 368,320,000
Depreciation and Amortization 404,231,000
Capital Expenditure -646,456,000
Unlevered Free Cash Flow 1,426,734,834
Current Assets 3,677,771,000
Current Cash 187,915,000
Current Liabilities 2,622,805,000
Current Debt 500,950,000
Non-Cash Working Capital (NCWC) 1,368,001,000
Change in NCWC 87,755,000
EBIT 2,063,449,000
Tax Provision 714,495,000
Depreciation and Amortization 379,931,000
Capital Expenditure -560,296,000
Unlevered Free Cash Flow 1,220,786,602
Current Assets 3,432,410,000
Current Cash 157,947,000
Current Liabilities 1,995,596,000
Current Debt 1,379,000
Non-Cash Working Capital (NCWC) 1,280,246,000
Change in NCWC 214,042,000
EBIT 1,940,294,000
Tax Provision 687,944,000
Depreciation and Amortization 352,431,000
Capital Expenditure -504,806,000
Unlevered Free Cash Flow 1,281,617,596
Current Assets 3,532,609,000
Current Cash 579,823,000
Current Liabilities 1,987,740,000
Current Debt 101,158,000
Non-Cash Working Capital (NCWC) 1,066,204,000
Change in NCWC 102,789,000
EBIT 1,769,093,000
Tax Provision 615,516,000
Depreciation and Amortization 342,353,000
Capital Expenditure -373,967,000
Unlevered Free Cash Flow 1,192,442,244
Current Assets 3,205,607,000
Current Cash 506,187,000
Current Liabilities 1,811,971,000
Current Debt 75,966,000
Non-Cash Working Capital (NCWC) 963,415,000
Change in NCWC 169,051,000
EBIT 1,736,185,000
Tax Provision 603,214,000
Depreciation and Amortization 332,837,000
Capital Expenditure -538,444,000
Unlevered Free Cash Flow 1,056,460,171
Current Assets 2,677,113,000
Current Cash 145,094,000
Current Liabilities 1,738,547,000
Current Debt 892,000
Non-Cash Working Capital (NCWC) 794,364,000
Change in NCWC 156,105,000
EBIT 1,655,276,000
Tax Provision 544,732,000
Depreciation and Amortization 302,911,000
Capital Expenditure -571,596,000
Unlevered Free Cash Flow 940,528,630

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