DCF Tool

SKX

Skechers U S A, Inc. – Footwear Manufacturing
a two-billion-dollar global leader in the high performance and lifestyle footwear industry, skechers usa, inc. designs, develops and markets more than 3,000 styles for men, women and children. skechers' success stems from its employees, high-quality, varied product offering, diversified domestic and international distribution channels, and targeted multi-channel marketing. the company offers two distinct footwear categories: a lifestyle division which includes skechers memory foam and the charity line bobs from skechers, and skechers performance which includes skechers gorun and skechers gowalk footwear. through licensing agreements, the company also offers branded apparel, bags, eyewear and more. celebrity product endorsees for skechers' collections include the world famous drummer ringo starr, multi-platinum recording artist demi lovato, model and actress kelly brook, tv personality brooke burke-charvet, legendary quarterbacks joe montana and joe namath, baseball stars pete rose
Analysis Results
Intrinsic Value $103.50
Latest Price $56.17
Relative Value 46% 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 14.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 14.2%, 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)
2024 0.671 0.617
2025 0.766 0.649
2026 0.874 0.682
2027 0.998 0.717
2028 1.14 0.753
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 17.5 billion. This corresponds to a present value of 10.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.42 billion. Adding in the terminal value gives a total present value of 14.1 billion.

There are presently 136.0 million outstanding shares, so the intrinsic value per share is 103.5.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,952,604,000
Current Cash 1,189,910,000
Current Liabilities 1,660,867,000
Current Debt 58,465,000
Non-Cash Working Capital (NCWC) 1,160,292,000
Change in NCWC -380,027,000
EBIT 784,786,000
Tax Provision 150,949,000
Depreciation and Amortization 181,925,000
Capital Expenditure -323,722,000
Unlevered Free Cash Flow 115,044,902
Current Assets 3,646,273,000
Current Cash 615,733,000
Current Liabilities 1,613,040,000
Current Debt 122,819,000
Non-Cash Working Capital (NCWC) 1,540,319,000
Change in NCWC 331,782,000
EBIT 546,670,000
Tax Provision 93,095,000
Depreciation and Amortization 153,716,000
Capital Expenditure -358,992,000
Unlevered Free Cash Flow 575,729,257
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

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