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Tanger Factory Outlet Centers, Inc. – Other Financial Vehicles
Tanger Factory Outlet Centers, Inc. is a leading operator of upscale open-air outlet centers that owns, or has an ownership interest in, a portfolio of 36 centers. Tanger's operating properties are located in 20 states and in Canada, totaling approximately 13.6 million square feet, leased to over 2,500 stores operated by more than 500 different brand name companies. The Company has more than 40 years of experience in the outlet industry and is a publicly-traded REIT.
Analysis Results
Intrinsic Value $40.83
Latest Price $13.68
Relative Value 66% 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 4.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.7%, 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)
2022 191 179
2023 200 176
2024 209 172
2025 219 169
2026 229 166
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 5010 million. This corresponds to a present value of 3400 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 862 million. Adding in the terminal value gives a total present value of 4260 million.

There are presently 104.0 million outstanding shares, so the intrinsic value per share is 40.83.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 265,840,000
Current Cash 161,255,000
Current Liabilities 92,995,000
Current Debt 0
Non-Cash Working Capital (NCWC) 11,590,000
Change in NCWC -5,439,000
EBIT 118,868,000
Tax Provision 0
Depreciation and Amortization 110,008,000
Capital Expenditure -48,360,000
Unlevered Free Cash Flow 175,077,000
Current Assets 190,114,000
Current Cash 84,832,000
Current Liabilities 88,253,000
Current Debt 0
Non-Cash Working Capital (NCWC) 17,029,000
Change in NCWC -7,027,000
EBIT 89,106,000
Tax Provision 0
Depreciation and Amortization 117,143,000
Capital Expenditure -28,566,000
Unlevered Free Cash Flow 170,656,000
Current Assets 120,290,000
Current Cash 16,672,000
Current Liabilities 79,562,000
Current Debt 0
Non-Cash Working Capital (NCWC) 24,056,000
Change in NCWC 106,732,000
EBIT 151,349,000
Tax Provision 0
Depreciation and Amortization 123,314,000
Capital Expenditure -47,884,000
Unlevered Free Cash Flow 333,511,000
Current Assets 9,083,000
Current Cash 9,083,000
Current Liabilities 82,676,000
Current Debt 0
Non-Cash Working Capital (NCWC) -82,676,000
Change in NCWC 7,740,000
EBIT 159,259,000
Tax Provision 0
Depreciation and Amortization 131,722,000
Capital Expenditure -64,253,000
Unlevered Free Cash Flow 234,468,000
Current Assets 6,101,000
Current Cash 6,101,000
Current Liabilities 90,416,000
Current Debt 0
Non-Cash Working Capital (NCWC) -90,416,000
Change in NCWC -12,273,000
EBIT 162,660,000
Tax Provision 0
Depreciation and Amortization 127,744,000
Capital Expenditure -166,231,000
Unlevered Free Cash Flow 111,900,000
Current Assets 12,222,000
Current Cash 12,222,000
Current Liabilities 78,143,000
Current Debt 0
Non-Cash Working Capital (NCWC) -78,143,000
Change in NCWC -102,053,000
EBIT 257,665,000
Tax Provision 0
Depreciation and Amortization 115,357,000
Capital Expenditure -165,060,000
Unlevered Free Cash Flow 105,909,000
Current Assets 142,864,000
Current Cash 21,558,000
Current Liabilities 97,396,000
Current Debt 0
Non-Cash Working Capital (NCWC) 23,910,000
Change in NCWC 93,468,000
EBIT 155,945,000
Tax Provision 0
Depreciation and Amortization 103,936,000
Capital Expenditure -238,706,000
Unlevered Free Cash Flow 114,643,000
Current Assets 16,875,000
Current Cash 16,875,000
Current Liabilities 69,558,000
Current Debt 0
Non-Cash Working Capital (NCWC) -69,558,000
Change in NCWC -10,096,000
EBIT 140,916,000
Tax Provision 0
Depreciation and Amortization 102,432,000
Capital Expenditure -147,976,000
Unlevered Free Cash Flow 85,276,000
Current Assets 15,241,000
Current Cash 15,241,000
Current Liabilities 59,462,000
Current Debt 0
Non-Cash Working Capital (NCWC) -59,462,000
Change in NCWC -11,229,000
EBIT 138,935,000
Tax Provision 0
Depreciation and Amortization 95,746,000
Capital Expenditure -55,204,000
Unlevered Free Cash Flow 168,248,000
Current Assets 10,335,000
Current Cash 10,335,000
Current Liabilities 48,233,000
Current Debt 0
Non-Cash Working Capital (NCWC) -48,233,000
Change in NCWC 3,180,000
EBIT 106,290,000
Tax Provision 0
Depreciation and Amortization 98,683,000
Capital Expenditure -41,283,000
Unlevered Free Cash Flow 166,870,000

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