DCF Tool

DLTH

Duluth Holdings Inc – Clothing Accessories Stores
Duluth Trading is a growing lifestyle brand for the Modern, Self-Reliant American. Based in Mount Horeb, Wisconsin, Duluth Trading offers high quality, solution-based casual wear, workwear and accessories for men and women who lead a hands-on lifestyle and who value a job well-done. Duluth Trading provides its customers an engaging and entertaining experience. Its marketing incorporates humor and storytelling that conveys the uniqueness of its products in a distinctive, fun way, and its products are sold exclusively through our content-rich website, catalogs, and 'store like no other' retail locations.Duluth Trading is committed to outstanding customer service backed by our 'No Bull Guarantee' - if it's not right, we'll fix it.
Analysis Results
Intrinsic Value $18.01
Latest Price $6.09
Relative Value 66% undervalued
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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 23.9%.

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 23.9%, 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 17.9 16.6
2024 22.2 19.0
2025 27.5 21.7
2026 34.1 24.9
2027 42.3 28.5
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 693 million. This corresponds to a present value of 431 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 111 million. Adding in the terminal value gives a total present value of 542 million.

There are presently 30.1 million outstanding shares, so the intrinsic value per share is 18.01.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 222,521,000
Current Cash 77,051,000
Current Liabilities 115,996,000
Current Debt 3,394,000
Non-Cash Working Capital (NCWC) 32,868,000
Change in NCWC -40,259,000
EBIT 44,099,000
Tax Provision 9,887,000
Depreciation and Amortization 29,225,000
Capital Expenditure -10,352,000
Unlevered Free Cash Flow 11,657,219
Current Assets 210,310,000
Current Cash 47,221,000
Current Liabilities 95,714,000
Current Debt 5,752,000
Non-Cash Working Capital (NCWC) 73,127,000
Change in NCWC -11,909,000
EBIT 24,215,000
Tax Provision 4,637,000
Depreciation and Amortization 28,520,000
Capital Expenditure -11,743,000
Unlevered Free Cash Flow 22,850,832
Current Assets 162,192,000
Current Cash 538,000
Current Liabilities 78,775,000
Current Debt 2,157,000
Non-Cash Working Capital (NCWC) 85,036,000
Change in NCWC 19,680,000
EBIT 28,108,000
Tax Provision 5,429,000
Depreciation and Amortization 22,083,000
Capital Expenditure -24,435,000
Unlevered Free Cash Flow 39,058,603
Current Assets 118,198,000
Current Cash 731,000
Current Liabilities 52,611,000
Current Debt 500,000
Non-Cash Working Capital (NCWC) 65,356,000
Change in NCWC 16,607,000
EBIT 37,181,000
Tax Provision 8,450,000
Depreciation and Amortization 12,594,000
Capital Expenditure -53,036,000
Unlevered Free Cash Flow 3,408,329
Current Assets 101,826,000
Current Cash 2,865,000
Current Liabilities 50,296,000
Current Debt 84,000
Non-Cash Working Capital (NCWC) 48,749,000
Change in NCWC 5,922,000
EBIT 37,072,000
Tax Provision 11,878,000
Depreciation and Amortization 7,330,000
Capital Expenditure -46,464,000
Unlevered Free Cash Flow -8,542,231
Current Assets 101,246,000
Current Cash 24,042,000
Current Liabilities 35,119,000
Current Debt 742,000
Non-Cash Working Capital (NCWC) 42,827,000
Change in NCWC 6,278,000
EBIT 35,001,000
Tax Provision 13,525,000
Depreciation and Amortization 4,698,000
Capital Expenditure -28,672,000
Unlevered Free Cash Flow 3,800,449

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