The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$771.53||$795.92||$936.98||$976.63||$1,071.00|
|Source||Analyst x13||Analyst x12||Analyst x5||Analyst x3||Analyst x2|
Discounted (@ 10.03%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $1,071 × (1 + 2.47%) ÷ (10.03% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$12,393 = $3,392 + $9,001
Value = Total value / Shares Outstanding ($12,393 / 282)Discount to Share Price
Value per share:
Current discount (share price of $49.02): -11.65%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 10.03% = 2.47% + (1.004 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($13,836,638,976).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.004 = 0.789 (1 + (1- 35%) (41.81%))
Levered Beta used in calculation = 1.004
Mr. Leslie H. Wexner, also known as Les, founded L Brands, Inc. in 1963 and has been its Executive Chairman since 1975. He serves as Chief Executive Officer of LBrands Inc at Victoria's Secret Stores, LLC. Mr. Wexner has been Chief Executive Officer and Executive Director of L Brands, Inc. since 1963 and serves as its President and co-owner at Linden Trust. He serves as Chief Executive Officer of Limited Brands at Bath & Body Works, LLC. He serves as Chairman and Chief Executive Officer at Limited Brands Store Operations, Inc. He is the Founder of New Albany Company LLC. He served as Chairman and Chief Executive Officer of Intimate Brands, Inc. since 1995. He was a Founding Member and the First Chair of The Ohio State University Foundation. He serves as the Chairman of Limited Brands at Bath & Body Works, LLC. Mr. Wexner serves as Chairman of Victoria's Secret Direct, LLC. He served as Chairman of Limited Stores LLC. He served as a Director of Hollinger International Publishing Inc. He served as a Director of Sun-Times Media Group Inc. Mr. Wexner is Member of the American Academy of Arts and Sciences; Member of the Visiting Committee of the Kennedy School of Government at Harvard University; Trustee of the Columbus Jewish Federation and Foundation; Member of the Royal Shakespeare Company International Council; Member of the John Glenn School of Public Affairs; and Chairman of The Columbus Partnership. His areas of community interest include the Wexner Center for the Arts at The Ohio State University; the Wexner Institute for Pediatric Research at Children’s Hospital, Columbus; the Martin Luther King Center for the Performing Arts, Columbus; and the Wexner Heritage Village. Mr. Wexner has a profound interest in the development of tomorrow’s leaders through the works of the Fisher College of Business at The Ohio State University; Harvard University’s Center for Public Leadership; and The Wexner Foundation. Mr. Wexner was inaugurated by Harvard University into the Society of John Harvard Fellows and serves as a visiting lecturer at Harvard’s Kennedy School of Government. Mr. Wexner was a recipient of The Alexis de Tocqueville Society Award of the United Way of America, Woodrow Wilson Award for Citizenship, Ordre des arts et des letters, Knight of the Italian Republic and The American Jewish Committee Herbert H. Lehman Centennial Leadership Award. Mr. Wexner holds a B.S. degree in Business Administration from The Ohio State University and honorary degrees from The Ohio State University; The Hebrew University of Jerusalem; University of Tel Aviv; Hofstra University; Marietta College; Hebrew Union College; The Jewish Theological Seminary of America; Yeshiva University; and Brandeis University.
Average tenure and age of the L Brands management team in years:
Average tenure and age of the L Brands board of directors in years:
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for LB Price per share = $61.02 Earnings per share = $3.331 ∴ Price-Earnings Ratio = $61.02 ÷ $3.331 = 18.3x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … At 18.3x, LB’s P/E is higher than its industry peers (18x). … If this assumption does not hold true, LB’s higher P/E ratio may be because firms in our peer group are being undervalued by the market.Simply Wall St - – Full article
Investors may find it useful to understand how market analysts view L Brands's earnings growth trajectory over the next couple of years and whether the future looks brighter. … See our latest analysis for LB Market analysts' prospects for this coming year seems pessimistic, with earnings falling by -4.61%. … The slope of this line is the rate of earnings growth, which in this case is 8.85%.Simply Wall St - – Full article
View our latest analysis for L Brands 5 checks you should use to assess a dividend stock Whenever I am looking at a potential dividend stock investment, I always check these five metrics: Is its annual yield among the top 25% of dividend payers? … The current payout ratio for the stock is 17.95%, which means that the dividend is covered by earnings. … In the near future, analysts are predicting a higher payout ratio of 64.70%, leading to a dividend yield of 4.90%.Simply Wall St - – Full article
L Brands Inc (NYSE:LB)’s sound earnings growth per share is expected to be a double-digit 13.33% over the next three years. … This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 13.33% over the next few years. … LB delivered a high double-digit growth rate in the past year, compared to the less exciting rate expected this year.Simply Wall St - – Full article
When L Brands Inc (NYSE:LB) released its most recent earnings update (29 July 2017), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. … I prefer to use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … Let's see whether it is solely owing to an industry uplift, or if L Brands has seen some company-specific growth.Simply Wall St - – Full article
L Brands, Inc. operates as a specialty retailer of women’s intimate and other apparel, beauty and personal care products, and accessories. The company operates in three segments: Victoria’s Secret, Bath & Body Works, and Victoria's Secret and Bath & Body Works International. Its products include loungewear, bras, panties, swimwear, athletic attire, fragrances, shower gels and lotions, aromatherapy, soaps and sanitizers, home fragrances, handbags, jewelry, and personal care accessories. The company offers its products under the Victoria’s Secret, PINK, Bath & Body Works, La Senza, Henri Bendel, C.O. Bigelow, White Barn, and other brand names. L Brands, Inc. sells its merchandise through company-owned specialty retail stores in the United States, Canada, the United Kingdom, and Greater China, which are primarily mall-based; through its Websites comprising VictoriasSecret.com, BathandBodyWorks.com, HenriBendel.com, and LaSenza.com; and through franchises, licenses, and wholesale partners. As of January 28, 2017, the company operated 2,755 retail stores in the United States; 270 retail stores in Canada; 18 retail stores in the United Kingdom; and 31 retail stores in the Greater China area. It also operated 203 La Senza stores in 24 countries; 159 Bath & Body Works stores in 30 countries; 23 Victoria's Secret stores in 12 countries; 391 Victoria’s Secret Beauty and Accessories stores in 70 countries; and 5 PINK stores in 3 countries. The company was formerly known as Limited Brands, Inc. and changed its name to L Brands, Inc. in March 2013. L Brands, Inc. was founded in 1963 and is headquartered in Columbus, Ohio.
|Name:||L Brands, Inc.|
L Brands, Inc.
Three Limited Parkway,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NYSE||LB||Common Stock||New York Stock Exchange||US||USD||09. Feb 1973|
|DB||LTD||Common Stock||Deutsche Boerse AG||DE||EUR||09. Feb 1973|
|BMV||LB *||Common Stock||Bolsa Mexicana de Valores||MX||MXN||09. Feb 1973|
|BOVESPA||LBRN34||BDR REPR 1/4 COM USD0.50||Bolsa de Valores de Sao Paulo||BR||BRL||27. Jul 2015|
|Company Analysis updated:||2018/01/19|
|Last estimates confirmation:||2018/01/17|
|Last earnings update:||2017/10/28|
|Last annual earnings update:||2017/01/28|
All dates in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.