DCF Tool

TGT

Target Corp – All Other General Merchandise Stores
Minneapolis-based Target Corporation serves guests at nearly 1,900 stores and at Target.com. Since 1946, Target has given 5% of its profit to communities, which today equals millions of dollars a week.
Analysis Results
Intrinsic Value $85.61
Latest Price $163.96
Relative Value 92% overvalued
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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 2.7%.

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 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 (billion) Present value (billion)
2023 2.72 2.51
2024 2.8 2.37
2025 2.87 2.24
2026 2.95 2.12
2027 3.03 2.0
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 46.7 billion. This corresponds to a present value of 28.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 11.2 billion. Adding in the terminal value gives a total present value of 39.7 billion.

There are presently 464.0 million outstanding shares, so the intrinsic value per share is 85.61.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 21,573,000,000
Current Cash 5,911,000,000
Current Liabilities 21,747,000,000
Current Debt 171,000,000
Non-Cash Working Capital (NCWC) -5,914,000,000
Change in NCWC 822,000,000
EBIT 8,946,000,000
Tax Provision 1,961,000,000
Depreciation and Amortization 2,642,000,000
Capital Expenditure -3,544,000,000
Unlevered Free Cash Flow 6,896,413,607
Current Assets 20,756,000,000
Current Cash 8,511,000,000
Current Liabilities 20,125,000,000
Current Debt 1,144,000,000
Non-Cash Working Capital (NCWC) -6,736,000,000
Change in NCWC -2,735,000,000
EBIT 6,539,000,000
Tax Provision 1,178,000,000
Depreciation and Amortization 2,485,000,000
Capital Expenditure -2,649,000,000
Unlevered Free Cash Flow 2,251,081,500
Current Assets 12,902,000,000
Current Cash 2,577,000,000
Current Liabilities 14,487,000,000
Current Debt 161,000,000
Non-Cash Working Capital (NCWC) -4,001,000,000
Change in NCWC -1,002,000,000
EBIT 4,658,000,000
Tax Provision 921,000,000
Depreciation and Amortization 2,604,000,000
Capital Expenditure -3,027,000,000
Unlevered Free Cash Flow 2,209,129,355
Current Assets 12,519,000,000
Current Cash 1,556,000,000
Current Liabilities 15,014,000,000
Current Debt 1,052,000,000
Non-Cash Working Capital (NCWC) -2,999,000,000
Change in NCWC 11,000,000
EBIT 4,110,000,000
Tax Provision 746,000,000
Depreciation and Amortization 2,474,000,000
Capital Expenditure -3,516,000,000
Unlevered Free Cash Flow 2,244,924,918
Current Assets 12,564,000,000
Current Cash 2,643,000,000
Current Liabilities 13,201,000,000
Current Debt 270,000,000
Non-Cash Working Capital (NCWC) -3,010,000,000
Change in NCWC -1,498,000,000
EBIT 4,312,000,000
Tax Provision 718,000,000
Depreciation and Amortization 2,445,000,000
Capital Expenditure -2,533,000,000
Unlevered Free Cash Flow 1,876,845,858
Current Assets 11,990,000,000
Current Cash 2,512,000,000
Current Liabilities 12,708,000,000
Current Debt 1,718,000,000
Non-Cash Working Capital (NCWC) -1,512,000,000
Change in NCWC 211,000,000
EBIT 4,969,000,000
Tax Provision 1,296,000,000
Depreciation and Amortization 2,298,000,000
Capital Expenditure -1,547,000,000
Unlevered Free Cash Flow 4,306,832,534
Current Assets 14,130,000,000
Current Cash 4,046,000,000
Current Liabilities 12,622,000,000
Current Debt 815,000,000
Non-Cash Working Capital (NCWC) -1,723,000,000
Change in NCWC -1,955,000,000
EBIT 4,910,000,000
Tax Provision 1,602,000,000
Depreciation and Amortization 2,213,000,000
Capital Expenditure -1,438,000,000
Unlevered Free Cash Flow 2,132,230,347
Current Assets 14,087,000,000
Current Cash 2,210,000,000
Current Liabilities 11,736,000,000
Current Debt 91,000,000
Non-Cash Working Capital (NCWC) 232,000,000
Change in NCWC 971,000,000
EBIT 4,535,000,000
Tax Provision 1,204,000,000
Depreciation and Amortization 2,129,000,000
Capital Expenditure -1,786,000,000
Unlevered Free Cash Flow 4,354,299,753
Current Assets 11,573,000,000
Current Cash 695,000,000
Current Liabilities 12,777,000,000
Current Debt 1,160,000,000
Non-Cash Working Capital (NCWC) -739,000,000
Change in NCWC -3,806,000,000
EBIT 3,838,000,000
Tax Provision 1,132,000,000
Depreciation and Amortization 2,223,000,000
Capital Expenditure -3,453,000,000
Unlevered Free Cash Flow -2,598,134,063
Current Assets 16,388,000,000
Current Cash 784,000,000
Current Liabilities 14,031,000,000
Current Debt 1,494,000,000
Non-Cash Working Capital (NCWC) 3,067,000,000
Change in NCWC -1,087,000,000
EBIT 5,210,000,000
Tax Provision 1,610,000,000
Depreciation and Amortization 2,142,000,000
Capital Expenditure -3,277,000,000
Unlevered Free Cash Flow 1,168,060,750

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