Abercrombie & Fitch Co. (ANF)
Discount cash flow analysis
Price history
Sensitivity matrix
|
-1% |
Discount Rate % 0% |
1% |
||
|---|---|---|---|---|
| -1% | $96.83 | $95.03 | $93.30 | |
| Terminal Growth% | 0 | $97.74 | $95.90 | $94.14 |
| +1% | $98.67 | $96.79 | $95.00 |
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 $41.89 (undervalued by 149.94%) - over 4 years ago
- maxyouridea created a new valuation of $20.94 (overvalued by 35.9%) - over 11 years ago
- antbatalha created a new valuation of $22.47 (overvalued by 36.9%) - over 11 years ago
- antbatalha created a new valuation of $28.13 (overvalued by 21.01%) - over 11 years ago
- antbatalha created a new valuation of $30.69 (overvalued by 13.82%) - over 11 years ago
- lynchie created a new valuation of $21.45 (overvalued by 17.53%) - 12 years ago
- SethWellbourne created a new valuation of $19.51 (overvalued by 18.94%) - 12 years ago
- GordonGekko created a new valuation of $20.25 (undervalued by 15.78%) - 13 years ago
- GordonGekko created a new valuation of $61.08 (overvalued by 2.55%) - 13 years ago
- KiwiEMH created a new valuation of $76.51 (undervalued by 4.27%) - 13 years ago
- andrew created a new valuation of $95.90 (undervalued by 27.14%) - 13 years ago
Comments
The boring details
| All amounts in millions | Figures |
| Enterprise Value: | 839 |
| Net Debt (Long-term borrowings less cash): | -605 |
| Equity Value: | 6,500 |
| Number of Shares Outstanding: | 86,000,000 |
| Calculated value per share: | $95.90 |
Enterprise Value is the present value of the post-tax cash flows for a business into the future.
Where:
- 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.
Where:
- 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.
Where:
- 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.