DCF Tool

RVLV

Revolve Group Inc – Electronic Shopping and Mail-Order Houses
revolve is the virtual home for an unrivaled collection of over 500 of the world's most-coveted established and emerging brands in women's and men's designer apparel, shoes and accessories. revolve provides the highest quality online and mobile shopping experience, serving the style-savvy consumer with impeccable customer service. based in los angeles, revolveā€™s aesthetic is deeply rooted in the southern california lifestyle from which it was founded, where a savvy view of fashion and fun-loving attitude are infused into the entire revolve customer experience. for more information please visit www.revolveclothing.com
Analysis Results
Intrinsic Value $72.93
Latest Price $12.85
Relative Value 82% 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 36.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 13.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 36.8%, 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 138 122
2024 189 147
2025 259 178
2026 354 215
2027 484 259
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 4360 million. This corresponds to a present value of 2060 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 921 million. Adding in the terminal value gives a total present value of 2980 million.

There are presently 40.9 million outstanding shares, so the intrinsic value per share is 72.93.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 518,217,000
Current Cash 234,724,000
Current Liabilities 181,086,000
Current Debt 0
Non-Cash Working Capital (NCWC) 102,407,000
Change in NCWC 41,242,000
EBIT 73,140,000
Tax Provision 17,919,000
Depreciation and Amortization 4,791,000
Capital Expenditure -5,167,000
Unlevered Free Cash Flow 96,899,969
Current Assets 439,842,000
Current Cash 218,455,000
Current Liabilities 160,222,000
Current Debt 0
Non-Cash Working Capital (NCWC) 61,165,000
Change in NCWC 35,941,000
EBIT 105,291,000
Tax Provision 4,888,000
Depreciation and Amortization 4,508,000
Capital Expenditure -2,195,000
Unlevered Free Cash Flow 138,630,722
Current Assets 276,925,000
Current Cash 146,013,000
Current Liabilities 105,688,000
Current Debt 0
Non-Cash Working Capital (NCWC) 25,224,000
Change in NCWC -7,174,000
EBIT 61,066,000
Tax Provision 3,282,000
Depreciation and Amortization 4,827,000
Capital Expenditure -2,324,000
Unlevered Free Cash Flow 53,058,693
Current Assets 199,342,000
Current Cash 65,418,000
Current Liabilities 101,526,000
Current Debt 0
Non-Cash Working Capital (NCWC) 32,398,000
Change in NCWC -8,130,000
EBIT 48,098,000
Tax Provision 11,500,000
Depreciation and Amortization 3,952,000
Capital Expenditure -12,455,000
Unlevered Free Cash Flow 19,738,008
Current Assets 139,153,000
Current Cash 16,369,000
Current Liabilities 82,256,000
Current Debt 0
Non-Cash Working Capital (NCWC) 40,528,000
Change in NCWC 6,486,000
EBIT 41,798,000
Tax Provision 10,529,000
Depreciation and Amortization 2,867,000
Capital Expenditure -3,045,000
Unlevered Free Cash Flow 37,415,613

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