DCF Tool

ELF

e.l.f. Beauty Inc – Cosmetics, Beauty Supplies, and Perfume Stores
launched in 2004, e.l.f. cosmetics is a revolutionary beauty brand that offers women everywhere the freedom to experiment and play to enhance their own unique beauty. at e.l.f., we believe every woman should have access to the best in beauty and that is our mission – to make luxurious beauty more accessible. in fact, our line of cosmetics and tools for eyes, lips and face start at just $1! we think of ourselves as the brand that challenges the expected in mass cosmetics through innovation, creativity and passion. we attribute our success to our consumer-driven business model that allows us to respond to real feedback in real time. our consumers are our biggest asset – hearing from you fuels our passion and continually inspires and motivates us. so please keep doing what you’re doing and we’ll keep doing what we’re doing. and together, we will make it easy to have fun with beauty every single day!
Analysis Results
Intrinsic Value $192.34
Latest Price $122.44
Relative Value 36% 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 39.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 39.3%, 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 (million) Present value (million)
2023 109 105
2024 152 140
2025 212 187
2026 295 250
2027 411 334
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 12300 million. This corresponds to a present value of 9600 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1020 million. Adding in the terminal value gives a total present value of 10600 million.

There are presently 55.2 million outstanding shares, so the intrinsic value per share is 192.34.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 303,325,000
Current Cash 120,778,000
Current Liabilities 107,976,000
Current Debt 5,575,000
Non-Cash Working Capital (NCWC) 80,146,000
Change in NCWC -10,299,000
EBIT 68,143,000
Tax Provision 2,544,000
Depreciation and Amortization 22,164,000
Capital Expenditure -1,723,000
Unlevered Free Cash Flow 75,579,444
Current Assets 193,029,000
Current Cash 43,353,000
Current Liabilities 65,017,000
Current Debt 5,786,000
Non-Cash Working Capital (NCWC) 90,445,000
Change in NCWC 35,119,000
EBIT 29,820,000
Tax Provision 3,661,000
Depreciation and Amortization 27,083,000
Capital Expenditure -4,818,000
Unlevered Free Cash Flow 82,911,167
Current Assets 170,144,000
Current Cash 57,768,000
Current Liabilities 73,331,000
Current Debt 16,281,000
Non-Cash Working Capital (NCWC) 55,326,000
Change in NCWC 7,688,000
EBIT 12,041,000
Tax Provision -2,542,000
Depreciation and Amortization 25,179,000
Capital Expenditure -6,474,000
Unlevered Free Cash Flow 38,434,000
Current Assets 132,360,000
Current Cash 46,167,000
Current Liabilities 51,123,000
Current Debt 12,568,000
Non-Cash Working Capital (NCWC) 47,638,000
Change in NCWC -9,746,000
EBIT 23,968,000
Tax Provision 6,185,000
Depreciation and Amortization 22,843,000
Capital Expenditure -9,422,000
Unlevered Free Cash Flow 21,483,698
Current Assets 141,743,000
Current Cash 51,205,000
Current Liabilities 43,015,000
Current Debt 9,861,000
Non-Cash Working Capital (NCWC) 57,384,000
Change in NCWC -13,486,000
EBIT 26,162,000
Tax Provision 2,431,000
Depreciation and Amortization 17,861,000
Capital Expenditure -8,872,000
Unlevered Free Cash Flow 18,123,018
Current Assets 123,644,000
Current Cash 10,059,000
Current Liabilities 51,361,000
Current Debt 8,646,000
Non-Cash Working Capital (NCWC) 70,870,000
Change in NCWC 32,881,000
EBIT 33,279,000
Tax Provision -11,006,000
Depreciation and Amortization 14,521,000
Capital Expenditure -7,544,000
Unlevered Free Cash Flow 73,137,000

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