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PETS

Petmed Express, Inc. – Pharmacies and Drug Stores
Founded in 1996, PetMed Express is America's Most Trusted Pet Pharmacy, delivering prescription and non-prescription pet medications and other health products for dogs, cats, and horses at competitive prices direct to the consumer through its toll free number and on the Internet through its website.
Analysis Results
Intrinsic Value $28.07
Latest Price $19.52
Relative Value 30% 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 4.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.5%, 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 30.1 28.0
2024 31.4 27.3
2025 32.8 26.6
2026 34.3 25.9
2027 35.9 25.3
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 695 million. This corresponds to a present value of 456 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 133 million. Adding in the terminal value gives a total present value of 589 million.

There are presently 21.0 million outstanding shares, so the intrinsic value per share is 28.07.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 150,995,000
Current Cash 111,080,000
Current Liabilities 33,197,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,718,000
Change in NCWC 9,184,000
EBIT 25,710,000
Tax Provision 5,971,000
Depreciation and Amortization 2,738,000
Capital Expenditure -1,752,000
Unlevered Free Cash Flow 30,209,193
Current Assets 161,187,000
Current Cash 118,718,000
Current Liabilities 44,935,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,466,000
Change in NCWC -3,379,000
EBIT 37,587,000
Tax Provision 8,613,000
Depreciation and Amortization 2,427,000
Capital Expenditure -2,432,000
Unlevered Free Cash Flow 25,947,776
Current Assets 129,018,000
Current Cash 103,762,000
Current Liabilities 24,343,000
Current Debt 0
Non-Cash Working Capital (NCWC) 913,000
Change in NCWC -6,363,000
EBIT 30,977,000
Tax Provision 8,042,000
Depreciation and Amortization 2,257,000
Capital Expenditure -2,311,000
Unlevered Free Cash Flow 17,209,897
Current Assets 126,431,000
Current Cash 100,529,000
Current Liabilities 18,626,000
Current Debt 0
Non-Cash Working Capital (NCWC) 7,276,000
Change in NCWC -1,914,000
EBIT 46,174,000
Tax Provision 11,381,000
Depreciation and Amortization 2,225,000
Capital Expenditure -620,000
Unlevered Free Cash Flow 35,166,799
Current Assets 105,235,000
Current Cash 77,936,000
Current Liabilities 18,109,000
Current Debt 0
Non-Cash Working Capital (NCWC) 9,190,000
Change in NCWC 4,490,000
EBIT 52,136,000
Tax Provision 16,506,000
Depreciation and Amortization 2,126,000
Capital Expenditure -703,000
Unlevered Free Cash Flow 42,050,249
Current Assets 81,785,000
Current Cash 58,730,000
Current Liabilities 18,355,000
Current Debt 0
Non-Cash Working Capital (NCWC) 4,700,000
Change in NCWC -18,204,000
EBIT 37,483,000
Tax Provision 14,105,000
Depreciation and Amortization 1,369,000
Capital Expenditure -10,604,000
Unlevered Free Cash Flow -3,896,979
Current Assets 67,627,000
Current Cash 37,639,000
Current Liabilities 7,084,000
Current Debt 0
Non-Cash Working Capital (NCWC) 22,904,000
Change in NCWC 1,125,000
EBIT 32,388,000
Tax Provision 12,000,000
Depreciation and Amortization 770,000
Capital Expenditure -20,130,000
Unlevered Free Cash Flow 2,218,956
Current Assets 80,400,000
Current Cash 51,204,000
Current Liabilities 7,417,000
Current Debt 0
Non-Cash Working Capital (NCWC) 21,779,000
Change in NCWC -10,493,000
EBIT 29,327,000
Tax Provision 10,345,000
Depreciation and Amortization 660,000
Capital Expenditure -918,000
Unlevered Free Cash Flow 7,661,984
Current Assets 74,209,000
Current Cash 33,844,000
Current Liabilities 8,093,000
Current Debt 0
Non-Cash Working Capital (NCWC) 32,272,000
Change in NCWC 4,727,000
EBIT 28,218,000
Tax Provision 10,427,000
Depreciation and Amortization 867,000
Capital Expenditure -45,000
Unlevered Free Cash Flow 23,406,456
Current Assets 70,187,000
Current Cash 33,645,000
Current Liabilities 8,997,000
Current Debt 0
Non-Cash Working Capital (NCWC) 27,545,000
Change in NCWC 6,477,000
EBIT 27,005,000
Tax Provision 10,141,000
Depreciation and Amortization 1,091,000
Capital Expenditure -626,000
Unlevered Free Cash Flow 23,917,786
Current Assets 87,607,000
Current Cash 57,148,000
Current Liabilities 9,391,000
Current Debt 0
Non-Cash Working Capital (NCWC) 21,068,000
Change in NCWC 201,000
EBIT 26,022,000
Tax Provision 9,712,000
Depreciation and Amortization 1,411,000
Capital Expenditure -705,000
Unlevered Free Cash Flow 17,345,530

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