Company | Home Depot (HD)

Lab 4 Question: Complete a 5-year DCF using the terminal growth method. Compute the NPV of these free cash flows. Question: How does it compare to today's price? Question: How does it compare to the price implied in the multiples method? Discounted Cash Flow Valuation Discount (n) Capitalization MRQ % Discount factor Total Debt Total Equity 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total Capitalization Sales YoY WACC Risk free rate - EBIT Market risk premium - Margin Beta - Lab 4: Cost of Equity @ 7% D&A Cost of equity < Lab 4 use 7%, Lab 6 Recalculate Using Beta & WACC % of sales Wtd. Cost of equity Capex Cost of debt Capex / D&A Wtd. Cost of debt Chg. Working Capital WACC (Discount Rate) Working capital % of sales Terminal Growth Terminal Growth Rate Tax Tax Rate NPV / Implied Share Price Calculation NPV through 2026 Free Cash Flow NPV terminal value Enterprise Value Discounted FCF Cash & Equivalents Net Debt Equity Value Diluted Shares Outstanding Equity value per share

Please Use Excel