Discount cash flow analysis

Buy Undervalued by 1894.4%

5% margin of safety What's this?


How does this work?

This is an interactive analyst report for SUPERVALU INC., based on a discounted cash flow valuation approach.

You can modify the assumptions and the valuation will be updated automatically. You can also save and share your valuation.

Values in $ millions
2016 2017 2018 2019 2020 2021 2022 2023

What will the revenues be in the future?

Growth beyond year three is driven by the terminal growth rate.

Price history

Sensitivity matrix

Discount Rate %

  -1% $94.19 $91.97 $89.84
Terminal Growth% 0 $95.42 $93.14 $90.96
  +1% $96.67 $94.34 $92.10

How does a change in discount rate or terminal growth affect valuation?

This table shows the sensitivity of the valuation to two key variables - the discount rate and the terminal growth rate

Valuations and comments

  • Valuecruncher created a new valuation of $93.14 (undervalued by 1894.43%) - over 4 years ago
  • Diegoengel created a new valuation of $41.78 (undervalued by 184.99%) - over 11 years ago
  • GordonGekko created a new valuation of $12.29 (overvalued by 17.96%) - almost 12 years ago
  • Diegoengel created a new valuation of $37.91 (undervalued by 45.19%) - almost 13 years ago


No comments yet. Login to comment.

The boring details

All amounts in millions Figures
Enterprise Value: 3,708
Net Debt (Long-term borrowings less cash): 2,467
Equity Value: 1,241
Number of Shares Outstanding: 265,000,000
Calculated value per share: $93.14

Enterprise Value is the present value of the post-tax cash flows for a business into the future.

Calcuation of EV


  • C1, C2, C3 - the cash flow in period 1, 2, 3, ...
  • r - the discount rate

To capture the cash flows into the future a terminal value is calculated via a perpetuity calculation -
based on the final years forecast post-tax free cash flow.



  • Cn - the cash flow in the final forecast period.
  • LTG - the long-term growth rate
  • r - the discount rate
  • g - the terminal growth rate

The Capital Asset Pricing Model (CAPM) is used to determine the equity component in the discount rate.

CAPM model


  • rt - the risk free rate
  • t - the tax rate
  • B - the beta of the company
  • MRP - the Market Risk Premium

Valuecruncher uses an estimate of Weighted Average Cost of Capital (WACC) to determine the discount rate in the calculation.