DCF Tool

SFM

Sprouts Farmers Market Inc – Supermarkets and Other Grocery (except Convenience) Stores
Sprouts is the place where goodness grows. True to its farm-stand heritage, Sprouts offers a unique grocery experience featuring an open layout with fresh produce at the heart of the store. Sprouts inspires wellness naturally with a carefully curated assortment of better-for-you products paired with purpose-driven people. The healthy grocer continues to bring the latest in wholesome, innovative products made with lifestyle-friendly ingredients such as organic, plant-based and gluten-free. Headquartered in Phoenix, and one of the fastest growing retailers in the country, Sprouts employs approximately 35,000 team members and operates more than 360 stores in 23 states nationwide.
Analysis Results
Intrinsic Value $403.52
Latest Price $27.75
Relative Value 93% 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 44.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 44.0%, 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)
2022 0.582 0.546
2023 0.837 0.737
2024 1.21 0.996
2025 1.74 1.35
2026 2.5 1.82
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 55.6 billion. This corresponds to a present value of 37.9 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.44 billion. Adding in the terminal value gives a total present value of 43.4 billion.

There are presently 107.0 million outstanding shares, so the intrinsic value per share is 403.52.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 567,716,000
Current Cash 245,287,000
Current Liabilities 513,473,000
Current Debt 1,078,000
Non-Cash Working Capital (NCWC) -189,966,000
Change in NCWC 8,944,000
EBIT 338,749,000
Tax Provision 78,235,000
Depreciation and Amortization 234,058,000
Capital Expenditure -102,378,000
Unlevered Free Cash Flow 397,168,640
Current Assets 465,960,000
Current Cash 169,697,000
Current Liabilities 496,132,000
Current Debt 959,000
Non-Cash Working Capital (NCWC) -198,910,000
Change in NCWC -85,377,000
EBIT 391,296,000
Tax Provision 89,428,000
Depreciation and Amortization 225,783,000
Capital Expenditure -121,968,000
Unlevered Free Cash Flow 316,884,805
Current Assets 387,839,000
Current Cash 85,314,000
Current Liabilities 416,812,000
Current Debt 754,000
Non-Cash Working Capital (NCWC) -113,533,000
Change in NCWC -143,214,000
EBIT 224,620,000
Tax Provision 46,539,000
Depreciation and Amortization 204,646,000
Capital Expenditure -183,232,000
Unlevered Free Cash Flow 49,531,032
Current Assets 333,841,000
Current Cash 1,588,000
Current Liabilities 310,000,000
Current Debt 7,428,000
Non-Cash Working Capital (NCWC) 29,681,000
Change in NCWC 40,129,000
EBIT 234,987,000
Tax Provision 37,260,000
Depreciation and Amortization 110,749,000
Capital Expenditure -177,083,000
Unlevered Free Cash Flow 164,063,948
Current Assets 299,507,000
Current Cash 19,479,000
Current Liabilities 299,714,000
Current Debt 9,238,000
Non-Cash Working Capital (NCWC) -10,448,000
Change in NCWC -15,224,000
EBIT 227,196,000
Tax Provision 47,078,000
Depreciation and Amortization 96,744,000
Capital Expenditure -198,624,000
Unlevered Free Cash Flow 58,048,221
Current Assets 264,026,000
Current Cash 12,465,000
Current Liabilities 259,155,000
Current Debt 12,370,000
Non-Cash Working Capital (NCWC) 4,776,000
Change in NCWC 11,080,000
EBIT 213,160,000
Tax Provision 74,286,000
Depreciation and Amortization 80,414,000
Capital Expenditure -181,018,000
Unlevered Free Cash Flow 43,900,644
Current Assets 345,215,000
Current Cash 136,069,000
Current Liabilities 230,422,000
Current Debt 14,972,000
Non-Cash Working Capital (NCWC) -6,304,000
Change in NCWC -25,962,000
EBIT 230,556,000
Tax Provision 77,002,000
Depreciation and Amortization 69,169,000
Capital Expenditure -125,313,000
Unlevered Free Cash Flow 62,266,133
Current Assets 334,129,000
Current Cash 130,513,000
Current Liabilities 220,840,000
Current Debt 36,882,000
Non-Cash Working Capital (NCWC) 19,658,000
Change in NCWC 32,087,000
EBIT 200,436,000
Tax Provision 66,414,000
Depreciation and Amortization 60,362,000
Capital Expenditure -127,065,000
Unlevered Free Cash Flow 89,362,229
Current Assets 231,627,000
Current Cash 77,652,000
Current Liabilities 175,621,000
Current Debt 9,217,000
Non-Cash Working Capital (NCWC) -12,429,000
Change in NCWC -16,660,000
EBIT 147,289,000
Tax Provision 32,741,000
Depreciation and Amortization 47,217,000
Capital Expenditure -87,463,000
Unlevered Free Cash Flow 33,019,359

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