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Steven Madden Ltd. – Footwear Manufacturing
steven madden, ltd. is globally recognized as a leading company in the fashion industry. steve madden has offices & stores located throughout the united states. founded in 1990, the brand has expanded to consist of hundreds of hard working individuals in multiple areas of expertise. with an emphasis on retail, wholesale, licensee & international business, there's a constant need for new ideas and versatility. our environment is extremely fast paced, and requires associates to maintain a balance of energy & professionalism. in addition to marketing products under its owned brands including steve madden, steven by steve madden, madden girl, freebird by steven, stevies, betsey johnson, dolce vita, dv by dolce vita, brian atwood, b brian atwood, report signature, report, big buddha, wild pair, cejon & mad love, the company is the licensee of various brands, including olsenboye for footwear, handbags & belts and superga & l.e.i. for footwear. the company also designs & sources products unde
Analysis Results
Intrinsic Value $36.75
Latest Price $30.85
Relative Value 16% 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 5.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 5.7%, 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 204 186
2024 216 179
2025 228 172
2026 241 166
2027 255 160
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 3340 million. This corresponds to a present value of 1900 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 863 million. Adding in the terminal value gives a total present value of 2770 million.

There are presently 75.3 million outstanding shares, so the intrinsic value per share is 36.75.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 843,557,000
Current Cash 289,798,000
Current Liabilities 320,908,000
Current Debt 0
Non-Cash Working Capital (NCWC) 232,851,000
Change in NCWC -13,083,000
EBIT 281,644,000
Tax Provision 65,103,000
Depreciation and Amortization 20,576,000
Capital Expenditure -16,351,000
Unlevered Free Cash Flow 207,838,885
Current Assets 944,660,000
Current Cash 263,536,000
Current Liabilities 435,190,000
Current Debt 0
Non-Cash Working Capital (NCWC) 245,934,000
Change in NCWC 70,775,000
EBIT 247,649,000
Tax Provision 49,609,000
Depreciation and Amortization 15,208,000
Capital Expenditure -6,608,000
Unlevered Free Cash Flow 276,271,239
Current Assets 698,241,000
Current Cash 287,166,000
Current Liabilities 235,916,000
Current Debt 0
Non-Cash Working Capital (NCWC) 175,159,000
Change in NCWC 42,173,000
EBIT 49,563,000
Tax Provision -11,704,000
Depreciation and Amortization 17,360,000
Capital Expenditure -6,562,000
Unlevered Free Cash Flow 102,534,000
Current Assets 718,879,000
Current Cash 304,622,000
Current Liabilities 281,271,000
Current Debt 0
Non-Cash Working Capital (NCWC) 132,986,000
Change in NCWC -78,451,000
EBIT 180,864,000
Tax Provision 39,504,000
Depreciation and Amortization 21,337,000
Capital Expenditure -18,311,000
Unlevered Free Cash Flow 66,013,909
Current Assets 703,125,000
Current Cash 266,999,000
Current Liabilities 224,689,000
Current Debt 0
Non-Cash Working Capital (NCWC) 211,437,000
Change in NCWC 17,772,000
EBIT 173,382,000
Tax Provision 46,841,000
Depreciation and Amortization 22,482,000
Capital Expenditure -12,450,000
Unlevered Free Cash Flow 155,390,430
Current Assets 645,518,000
Current Cash 245,241,000
Current Liabilities 206,612,000
Current Debt 0
Non-Cash Working Capital (NCWC) 193,665,000
Change in NCWC -254,000
EBIT 170,784,000
Tax Provision 53,189,000
Depreciation and Amortization 21,389,000
Capital Expenditure -14,775,000
Unlevered Free Cash Flow 124,431,249
Current Assets 542,656,000
Current Cash 165,610,000
Current Liabilities 183,127,000
Current Debt 0
Non-Cash Working Capital (NCWC) 193,919,000
Change in NCWC 15,737,000
EBIT 169,176,000
Tax Provision 49,726,000
Depreciation and Amortization 21,102,000
Capital Expenditure -15,897,000
Unlevered Free Cash Flow 140,922,410
Current Assets 457,819,000
Current Cash 104,838,000
Current Liabilities 174,799,000
Current Debt 0
Non-Cash Working Capital (NCWC) 178,182,000
Change in NCWC 26,195,000
EBIT 174,693,000
Tax Provision 58,811,000
Depreciation and Amortization 20,757,000
Capital Expenditure -19,459,000
Unlevered Free Cash Flow 142,615,591
Current Assets 442,226,000
Current Cash 112,648,000
Current Liabilities 177,591,000
Current Debt 0
Non-Cash Working Capital (NCWC) 151,987,000
Change in NCWC 10,711,000
EBIT 167,642,000
Tax Provision 58,764,000
Depreciation and Amortization 15,077,000
Capital Expenditure -18,341,000
Unlevered Free Cash Flow 117,611,072
Current Assets 496,645,000
Current Cash 200,866,000
Current Liabilities 154,503,000
Current Debt 0
Non-Cash Working Capital (NCWC) 141,276,000
Change in NCWC 19,562,000
EBIT 202,785,000
Tax Provision 75,666,000
Depreciation and Amortization 12,979,000
Capital Expenditure -20,746,000
Unlevered Free Cash Flow 141,146,851
Current Assets 441,254,000
Current Cash 185,062,000
Current Liabilities 134,478,000
Current Debt 0
Non-Cash Working Capital (NCWC) 121,714,000
Change in NCWC 18,734,000
EBIT 187,408,000
Tax Provision 64,623,000
Depreciation and Amortization 12,642,000
Capital Expenditure -20,102,000
Unlevered Free Cash Flow 132,928,894

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