DCF Tool

GIII

G-III Apparel Group Ltd. – Hosiery and Sock Mills
G-III designs, sources and markets apparel and accessories under owned, licensed and private label brands. G-III's substantial portfolio of more than 30 licensed and proprietary brands is anchored by five global power brands: DKNY, Donna Karan, Calvin Klein, Tommy Hilfiger and Karl Lagerfeld Paris. G-III's owned brands include DKNY, Donna Karan, Vilebrequin, G.H. Bass, Eliza J, Jessica Howard, Andrew Marc and Marc New York. G-III has fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld Paris, Kenneth Cole, Cole Haan, Guess?, Vince Camuto, Levi's and Dockers brands. Through its team sports business, G-III has licenses with the National Football League, National Basketball Association, Major League Baseball, National Hockey League and over 150 U.S. colleges and universities. G-III also distributes directly to consumers through its DKNY, Karl Lagerfeld Paris and Vilebrequin stores and its digital channels for the DKNY, Donna Karan, Vilebrequin, Karl Lagerfeld Paris, Andrew Marc, Wilsons Leather and G.H. Bass brands.
Analysis Results
Intrinsic Value $97.18
Latest Price $24.92
Relative Value 74% 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 12.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 12.2%, 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 (million) Present value (million)
2023 307 278
2024 345 283
2025 387 287
2026 434 292
2027 486 296
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 5890 million. This corresponds to a present value of 3250 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1440 million. Adding in the terminal value gives a total present value of 4690 million.

There are presently 48.2 million outstanding shares, so the intrinsic value per share is 97.18.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,652,857,000
Current Cash 465,984,000
Current Liabilities 510,805,000
Current Debt 4,237,000
Non-Cash Working Capital (NCWC) 680,305,000
Change in NCWC 85,799,000
EBIT 312,548,000
Tax Provision 70,875,000
Depreciation and Amortization 27,626,000
Capital Expenditure -18,261,000
Unlevered Free Cash Flow 325,963,655
Current Assets 1,344,040,000
Current Cash 351,934,000
Current Liabilities 402,002,000
Current Debt 4,402,000
Non-Cash Working Capital (NCWC) 594,506,000
Change in NCWC 36,477,000
EBIT 100,715,000
Tax Provision 12,203,000
Depreciation and Amortization 38,625,000
Capital Expenditure -16,035,000
Unlevered Free Cash Flow 125,380,579
Current Assets 1,368,688,000
Current Cash 197,372,000
Current Liabilities 613,960,000
Current Debt 673,000
Non-Cash Working Capital (NCWC) 558,029,000
Change in NCWC -44,940,000
EBIT 247,025,000
Tax Provision 38,261,000
Depreciation and Amortization 38,735,000
Capital Expenditure -37,990,000
Unlevered Free Cash Flow 150,927,049
Current Assets 1,253,895,000
Current Cash 70,138,000
Current Liabilities 580,788,000
Current Debt 0
Non-Cash Working Capital (NCWC) 602,969,000
Change in NCWC 36,311,000
EBIT 233,527,000
Tax Provision 45,763,000
Depreciation and Amortization 38,819,000
Capital Expenditure -29,205,000
Unlevered Free Cash Flow 221,317,331
Current Assets 959,601,000
Current Cash 45,776,000
Current Liabilities 347,167,000
Current Debt 0
Non-Cash Working Capital (NCWC) 566,658,000
Change in NCWC 79,096,000
EBIT 162,147,000
Tax Provision 47,925,000
Depreciation and Amortization 37,783,000
Capital Expenditure -34,507,000
Unlevered Free Cash Flow 173,905,955
Current Assets 882,938,000
Current Cash 79,957,000
Current Liabilities 315,419,000
Current Debt 0
Non-Cash Working Capital (NCWC) 487,562,000
Change in NCWC -37,487,000
EBIT 103,944,000
Tax Provision 25,824,000
Depreciation and Amortization 32,481,000
Capital Expenditure -24,928,000
Unlevered Free Cash Flow 39,491,213
Current Assets 902,440,000
Current Cash 132,587,000
Current Liabilities 244,804,000
Current Debt 0
Non-Cash Working Capital (NCWC) 525,049,000
Change in NCWC 95,700,000
EBIT 184,756,000
Tax Provision 64,800,000
Depreciation and Amortization 25,392,000
Capital Expenditure -42,172,000
Unlevered Free Cash Flow 196,841,922
Current Assets 798,866,000
Current Cash 128,354,000
Current Liabilities 241,163,000
Current Debt 0
Non-Cash Working Capital (NCWC) 429,349,000
Change in NCWC 57,633,000
EBIT 164,895,000
Tax Provision 59,450,000
Depreciation and Amortization 20,374,000
Capital Expenditure -42,566,000
Unlevered Free Cash Flow 142,137,534
Current Assets 586,190,000
Current Cash 22,091,000
Current Liabilities 241,226,000
Current Debt 48,843,000
Non-Cash Working Capital (NCWC) 371,716,000
Change in NCWC 50,707,000
EBIT 131,451,000
Tax Provision 45,826,000
Depreciation and Amortization 13,676,000
Capital Expenditure -29,283,000
Unlevered Free Cash Flow 117,267,091
Current Assets 516,585,000
Current Cash 27,360,000
Current Liabilities 233,216,000
Current Debt 65,000,000
Non-Cash Working Capital (NCWC) 321,009,000
Change in NCWC 27,360,000
EBIT 99,769,000
Tax Provision 35,436,000
Depreciation and Amortization 9,941,000
Capital Expenditure -11,615,000
Unlevered Free Cash Flow 87,028,672

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