DCF Tool

KR

Kroger Co. – Supermarkets and Other Grocery (except Convenience) Stores
The Kroger Co. is Fresh for Everyone™ and dedicated to its Purpose: To Feed the Human Spirit®. it is, across its family of companies, nearly half a million associates who serve over 60 million customers through a seamless shopping experience under a variety of banner names. It is committed to creating #ZeroHungerZeroWaste communities by 2025.
Analysis Results
Intrinsic Value $180.60
Latest Price $47.31
Relative Value 74% 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 13.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.4%, 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)
2024 3.07 2.92
2025 3.48 3.14
2026 3.94 3.39
2027 4.47 3.66
2028 5.07 3.94
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 152 billion. This corresponds to a present value of 113 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 17.1 billion. Adding in the terminal value gives a total present value of 130 billion.

There are presently 718.0 million outstanding shares, so the intrinsic value per share is 180.6.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 12,670,000,000
Current Cash 1,015,000,000
Current Liabilities 17,238,000,000
Current Debt 1,310,000,000
Non-Cash Working Capital (NCWC) -4,273,000,000
Change in NCWC 1,142,000,000
EBIT 4,126,000,000
Tax Provision 653,000,000
Depreciation and Amortization 3,579,000,000
Capital Expenditure -3,078,000,000
Unlevered Free Cash Flow 4,840,578,911
Current Assets 12,174,000,000
Current Cash 1,821,000,000
Current Liabilities 16,323,000,000
Current Debt 555,000,000
Non-Cash Working Capital (NCWC) -5,415,000,000
Change in NCWC -1,399,000,000
EBIT 3,477,000,000
Tax Provision 385,000,000
Depreciation and Amortization 3,429,000,000
Capital Expenditure -2,614,000,000
Unlevered Free Cash Flow 2,240,320,819
Current Assets 12,286,000,000
Current Cash 2,820,000,000
Current Liabilities 14,578,000,000
Current Debt 1,096,000,000
Non-Cash Working Capital (NCWC) -4,016,000,000
Change in NCWC -377,000,000
EBIT 2,937,000,000
Tax Provision 764,000,000
Depreciation and Amortization 3,057,000,000
Capital Expenditure -2,890,000,000
Unlevered Free Cash Flow 2,038,274,401
Current Assets 10,890,000,000
Current Cash 399,000,000
Current Liabilities 14,243,000,000
Current Debt 1,965,000,000
Non-Cash Working Capital (NCWC) -1,787,000,000
Change in NCWC -1,044,000,000
EBIT 2,251,000,000
Tax Provision 469,000,000
Depreciation and Amortization 2,649,000,000
Capital Expenditure -3,128,000,000
Unlevered Free Cash Flow 195,077,738
Current Assets 10,803,000,000
Current Cash 429,000,000
Current Liabilities 14,274,000,000
Current Debt 3,157,000,000
Non-Cash Working Capital (NCWC) -743,000,000
Change in NCWC -876,000,000
EBIT 2,614,000,000
Tax Provision 900,000,000
Depreciation and Amortization 2,465,000,000
Capital Expenditure -3,011,000,000
Unlevered Free Cash Flow 600,597,285
Current Assets 11,117,000,000
Current Cash 347,000,000
Current Liabilities 14,197,000,000
Current Debt 3,560,000,000
Non-Cash Working Capital (NCWC) 133,000,000
Change in NCWC 723,000,000
EBIT 2,085,000,000
Tax Provision -405,000,000
Depreciation and Amortization 2,436,000,000
Capital Expenditure -2,809,000,000
Unlevered Free Cash Flow 2,435,000,000
Current Assets 10,340,000,000
Current Cash 322,000,000
Current Liabilities 12,860,000,000
Current Debt 2,252,000,000
Non-Cash Working Capital (NCWC) -590,000,000
Change in NCWC 396,000,000
EBIT 3,436,000,000
Tax Provision 957,000,000
Depreciation and Amortization 2,340,000,000
Capital Expenditure -3,699,000,000
Unlevered Free Cash Flow 1,344,567,604
Current Assets 9,892,000,000
Current Cash 277,000,000
Current Liabilities 12,971,000,000
Current Debt 2,370,000,000
Non-Cash Working Capital (NCWC) -986,000,000
Change in NCWC -111,000,000
EBIT 3,576,000,000
Tax Provision 1,045,000,000
Depreciation and Amortization 2,089,000,000
Capital Expenditure -3,349,000,000
Unlevered Free Cash Flow 997,204,266
Current Assets 8,911,000,000
Current Cash 268,000,000
Current Liabilities 11,403,000,000
Current Debt 1,885,000,000
Non-Cash Working Capital (NCWC) -875,000,000
Change in NCWC -256,000,000
EBIT 3,137,000,000
Tax Provision 902,000,000
Depreciation and Amortization 1,948,000,000
Capital Expenditure -2,831,000,000
Unlevered Free Cash Flow 929,833,144
Current Assets 8,830,000,000
Current Cash 401,000,000
Current Liabilities 10,705,000,000
Current Debt 1,657,000,000
Non-Cash Working Capital (NCWC) -619,000,000
Change in NCWC -17,000,000
EBIT 2,725,000,000
Tax Provision 751,000,000
Depreciation and Amortization 1,703,000,000
Capital Expenditure -2,330,000,000
Unlevered Free Cash Flow 1,184,209,903
Current Assets 7,959,000,000
Current Cash 238,000,000
Current Liabilities 11,057,000,000
Current Debt 2,734,000,000
Non-Cash Working Capital (NCWC) -602,000,000
Change in NCWC 51,000,000
EBIT 2,764,000,000
Tax Provision 794,000,000
Depreciation and Amortization 1,652,000,000
Capital Expenditure -2,062,000,000
Unlevered Free Cash Flow 1,451,648,132

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