$3.28
+3.8%The Cato Corporation, together with its subsidiaries, operates as a specialty retailer of fashion apparel and accessories primarily in the southeastern United States. It operates through two segments, Retail and Credit. The company's stores and e-commerce websites offer a range of apparel and accessories, including dressy, career, and casual sportswear; and dresses, coats, shoes, lingerie, costume jewelry, and handbags, as well as men's wear, and lines for kids and infants. It operates its stores and e-commerce websites under the Cato, Cato Fashions, Cato Plus, It's Fashion, It's Fashion Metro, and Versona names. As of January 29, 2022, the company operated 1,311 stores in 32 states. It also provides credit card services to its customers, as well as layaway plans for customers who agree to make periodic payments. The company was incorporated in 1946 and is headquartered in Charlotte, North Carolina.
Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation
Base year metrics used for projections
Forecast period and terminal assumptions
Calculation flow from present value to intrinsic value per share
Operating Cash Flow - Maintenance CapEx = Owner Earnings
| Metric | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$2.6M | -$4.8M | -$8.7M | -$15.7M | -$28.4M | -$51.5M | -$93.3M | -$168.9M | -$305.9M | -$553.9M |
| Maintenance CapEx | -$1.4M | -$2.5M | -$4.5M | -$8.1M | -$14.7M | -$26.5M | -$48.1M | -$87.0M | -$157.6M | -$285.3M |
| Owner Earnings | -$4.0M | -$7.3M | -$13.1M | -$23.8M | -$43.1M | -$78.1M | -$141.3M | -$255.9M | -$463.5M | -$839.3M |
| Discount Factor | 0.926 | 0.857 | 0.794 | 0.735 | 0.681 | 0.630 | 0.583 | 0.540 | 0.500 | 0.463 |
| Present Value | -$3.7M | -$6.2M | -$10.4M | -$17.5M | -$29.3M | -$49.2M | -$82.5M | -$138.3M | -$231.9M | -$388.7M |
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