DCF Tool

SKX

Skechers U S A, Inc. – Footwear Merchant Wholesalers
Based in Manhattan Beach, California, Skechers designs, develops and markets a diverse range of lifestyle and performance footwear, apparel and accessories for men, women and children. The Company's collections are available in the United States and over 170 countries and territories via department and specialty stores, and direct to consumers through 3,770 Company- and third-party-owned retail stores and e-commerce websites. The Company manages its international business through a network of global distributors, joint venture partners in Asia, Israel and Mexico, and wholly-owned subsidiaries in Canada, Japan, India, Europe and Latin America.
Analysis Results
Intrinsic Value $194.45
Latest Price $41.54
Relative Value 79% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 31.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 31.8%, 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 (billion) Present value (billion)
2022 0.997 0.902
2023 1.31 1.08
2024 1.73 1.28
2025 2.28 1.53
2026 3.01 1.82
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 35.8 billion. This corresponds to a present value of 19.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.61 billion. Adding in the terminal value gives a total present value of 26.2 billion.

There are presently 135.0 million outstanding shares, so the intrinsic value per share is 194.45.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,372,240,000
Current Cash 796,283,000
Current Liabilities 1,445,582,000
Current Debt 78,162,000
Non-Cash Working Capital (NCWC) 1,208,537,000
Change in NCWC 392,171,000
EBIT 598,187,000
Tax Provision -245,875,000
Depreciation and Amortization 139,577,000
Capital Expenditure -309,674,000
Unlevered Free Cash Flow 820,261,000
Current Assets 3,344,351,000
Current Cash 1,370,826,000
Current Liabilities 1,212,706,000
Current Debt 55,547,000
Non-Cash Working Capital (NCWC) 816,366,000
Change in NCWC 99,896,000
EBIT 133,684,000
Tax Provision 8,502,000
Depreciation and Amortization 142,810,000
Capital Expenditure -309,916,000
Unlevered Free Cash Flow 59,128,373
Current Assets 2,819,591,000
Current Cash 936,913,000
Current Liabilities 1,238,231,000
Current Debt 72,023,000
Non-Cash Working Capital (NCWC) 716,470,000
Change in NCWC 57,930,000
EBIT 518,443,000
Tax Provision 88,753,000
Depreciation and Amortization 111,515,000
Capital Expenditure -236,111,000
Unlevered Free Cash Flow 362,604,663
Current Assets 2,472,140,000
Current Cash 972,266,000
Current Liabilities 850,222,000
Current Debt 8,888,000
Non-Cash Working Capital (NCWC) 658,540,000
Change in NCWC -122,517,000
EBIT 437,765,000
Tax Provision 60,611,000
Depreciation and Amortization 109,680,000
Capital Expenditure -143,036,000
Unlevered Free Cash Flow 220,455,655
Current Assets 2,105,024,000
Current Cash 736,431,000
Current Liabilities 597,348,000
Current Debt 9,812,000
Non-Cash Working Capital (NCWC) 781,057,000
Change in NCWC 285,688,000
EBIT 382,880,000
Tax Provision 149,156,000
Depreciation and Amortization 96,510,000
Capital Expenditure -136,190,000
Unlevered Free Cash Flow 480,267,666
Current Assets 1,827,766,000
Current Cash 718,536,000
Current Liabilities 621,730,000
Current Debt 7,869,000
Non-Cash Working Capital (NCWC) 495,369,000
Change in NCWC -5,806,000
EBIT 370,518,000
Tax Provision 74,125,000
Depreciation and Amortization 79,182,000
Capital Expenditure -119,471,000
Unlevered Free Cash Flow 248,022,807
Current Assets 1,570,467,000
Current Cash 507,991,000
Current Liabilities 577,013,000
Current Debt 15,712,000
Non-Cash Working Capital (NCWC) 501,175,000
Change in NCWC -86,034,000
EBIT 350,824,000
Tax Provision 72,450,000
Depreciation and Amortization 52,960,000
Capital Expenditure -118,199,000
Unlevered Free Cash Flow 123,336,824
Current Assets 1,285,014,000
Current Cash 466,685,000
Current Liabilities 505,737,000
Current Debt 274,617,000
Non-Cash Working Capital (NCWC) 587,209,000
Change in NCWC 173,499,000
EBIT 209,071,000
Tax Provision 39,184,000
Depreciation and Amortization 48,304,000
Capital Expenditure -56,905,000
Unlevered Free Cash Flow 331,162,865
Current Assets 1,014,928,000
Current Cash 372,011,000
Current Liabilities 310,422,000
Current Debt 81,215,000
Non-Cash Working Capital (NCWC) 413,710,000
Change in NCWC -10,028,000
EBIT 95,821,000
Tax Provision 21,347,000
Depreciation and Amortization 43,309,000
Capital Expenditure -41,381,000
Unlevered Free Cash Flow 62,841,222
Current Assets 940,312,000
Current Cash 325,826,000
Current Liabilities 292,541,000
Current Debt 101,793,000
Non-Cash Working Capital (NCWC) 423,738,000
Change in NCWC 63,725,000
EBIT 23,137,000
Tax Provision -39,000
Depreciation and Amortization 42,448,000
Capital Expenditure -52,452,000
Unlevered Free Cash Flow 76,858,000

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.