DCF Tool

TCS

Container Store Group Inc – Beer, Wine, and Liquor Stores
The Container Store Group, Inc. is the nation’s leading retailer of storage and organization products and solutions – a concept they originated in 1978. Today, with locations nationwide, the retailer offers more than 11,000 products designed to help customers accomplish projects, maximize their space and make the most of their home. The Container Store also offers a full suite of custom closets designed to accommodate all sizes, styles and budgets.
Analysis Results
Intrinsic Value $163.78
Latest Price $4.85
Relative Value 97% 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 38.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 38.1%, 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 175 162
2024 242 208
2025 334 265
2026 461 340
2027 637 434
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 10900 million. This corresponds to a present value of 6880 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1410 million. Adding in the terminal value gives a total present value of 8290 million.

There are presently 50.6 million outstanding shares, so the intrinsic value per share is 163.78.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 260,411,000
Current Cash 14,252,000
Current Liabilities 235,515,000
Current Debt 3,886,000
Non-Cash Working Capital (NCWC) 14,530,000
Change in NCWC 41,640,000
EBIT 125,405,000
Tax Provision 30,976,000
Depreciation and Amortization 34,289,000
Capital Expenditure -33,389,000
Unlevered Free Cash Flow 133,475,149
Current Assets 203,324,000
Current Cash 17,687,000
Current Liabilities 214,913,000
Current Debt 2,166,000
Non-Cash Working Capital (NCWC) -27,110,000
Change in NCWC -19,352,000
EBIT 100,132,000
Tax Provision 22,560,000
Depreciation and Amortization 34,731,000
Capital Expenditure -17,176,000
Unlevered Free Cash Flow 70,392,223
Current Assets 242,166,000
Current Cash 67,755,000
Current Liabilities 198,171,000
Current Debt 16,002,000
Non-Cash Working Capital (NCWC) -7,758,000
Change in NCWC -36,014,000
EBIT 43,118,000
Tax Provision 6,715,000
Depreciation and Amortization 38,638,000
Capital Expenditure -33,619,000
Unlevered Free Cash Flow -1,533,134
Current Assets 164,368,000
Current Cash 7,364,000
Current Liabilities 141,275,000
Current Debt 12,527,000
Non-Cash Working Capital (NCWC) 28,256,000
Change in NCWC 1,227,000
EBIT 51,432,000
Tax Provision 281,000
Depreciation and Amortization 36,305,000
Capital Expenditure -33,670,000
Unlevered Free Cash Flow 54,635,906
Current Assets 154,194,000
Current Cash 8,399,000
Current Liabilities 126,537,000
Current Debt 7,771,000
Non-Cash Working Capital (NCWC) 27,029,000
Change in NCWC -17,313,000
EBIT 40,099,000
Tax Provision -12,723,000
Depreciation and Amortization 37,922,000
Capital Expenditure -27,646,000
Unlevered Free Cash Flow 33,062,000
Current Assets 162,685,000
Current Cash 10,736,000
Current Liabilities 113,052,000
Current Debt 5,445,000
Non-Cash Working Capital (NCWC) 44,342,000
Change in NCWC 21,429,000
EBIT 42,157,000
Tax Provision 9,402,000
Depreciation and Amortization 37,124,000
Capital Expenditure -28,515,000
Unlevered Free Cash Flow 55,920,718
Current Assets 146,431,000
Current Cash 13,609,000
Current Liabilities 116,003,000
Current Debt 6,094,000
Non-Cash Working Capital (NCWC) 22,913,000
Change in NCWC 1,948,000
EBIT 24,922,000
Tax Provision 2,909,000
Depreciation and Amortization 34,230,000
Capital Expenditure -46,431,000
Unlevered Free Cash Flow 5,664,143

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