DCF Tool

SKT

Tanger Factory Outlet Centers, Inc. – Other Financial Vehicles
tanger factory outlet centers, inc.(nyse:skt), is a publicly-traded reit headquartered in greensboro, north carolina. tanger’s portfolio of outlet centers has continued to expand and today includes 46 outlet centers in 24 states coast to coast and in canada. savvy outlet shoppers look to tanger outlet centers for the biggest selection of first-quality, in-season merchandise, for the latest fashion trends from their favorite brand name and designer outlet stores and so much more. because consumer love shopping and saving direct from the manufacturer, tanger centers are major tourist attractions that welcome more than 180 million brand name bargain hunters annually. america knows the value of shopping tangerstyle. for more information on tanger visit our web site at www.tangeroutlet.com. if you are interested in a career with tanger, please visit our careers page: http://www.tangeroutlet.com/company/careers.aspx
Analysis Results
Intrinsic Value $32.10
Latest Price $22.64
Relative Value 29% 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 2.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 2.7%, 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 174 163
2024 179 156
2025 184 150
2026 189 144
2027 194 138
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 3940 million. This corresponds to a present value of 2620 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 752 million. Adding in the terminal value gives a total present value of 3380 million.

There are presently 105.0 million outstanding shares, so the intrinsic value per share is 32.1.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 375,737,000
Current Cash 264,574,000
Current Liabilities 104,741,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,422,000
Change in NCWC -5,168,000
EBIT 123,835,000
Tax Provision 0
Depreciation and Amortization 111,904,000
Capital Expenditure -84,752,000
Unlevered Free Cash Flow 145,819,000
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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