Editing Wm Morrison Supermarkets Limited (section)

== Discounted Cash Flow ==
A discounted cash flow was undertaken to provide a valuation for Wm Morrison Supermarkets Limited by forecasting future cash flows over a specific period and estimating a terminal value, which represents the business's value beyond that period. The projected cash flows are then discounted back to their present value using the company's weighted average cost of capital (WACC). The sum of the present values of the future cash flows and terminal value provides an estimate of the company's intrinsic value.

The table below represented he Unlevered Free Cash Flow (FCF) data for Wm Morrison Supermarkets Limited from 2018 to 2027, the company experienced a drop in recent years (2022). The projected FCF for the years 2023 to 2027 shows increasing gradually, indicating that Morrison will regain its momentum in the near future.
{| class="wikitable"
|Fiscal Year
|2018
|2019
|2020
|2021
|2022
|2023
|2024
|2025
|2026
|2027
|-
|FCF
|345
|447
|529
|NA
|194
|214
|235
|258
|284
|313
|-
|
|
|
|
|
|Projection Year
|1
|2
|3
|4
|5
|-
|Present Value 
|
|
|
|
|
|227
|265
|310
|362
|423
|}
Magnitude: Millions (M)


Wm Morrison Supermarkets Limited has an enterprise value of 20,674 units and an equity value of 17,250 units with a WACC of 6.21%. The implied share price is 7 units, showing a significant increase compared to the current share price of 3.65 units, with a remarkable 91.8% change.
{| class="wikitable"
|WACC
|6.21%
|-
|Sum of PV of FCF
|1,585
|-
|Growth rate
|4.50%
|-
|Terminal Value
|25,801
|-
|Present Value of Terminal Value
|19,089
|-
|Enterpise Value
|20,674
|-
|(+) cash
|333
|-
|(-) Debt
|3,757
|-
|Equity Value
|17,250
|-
|Diluted Shares Outstanding
|2,451
|-
|Implied share price
|7
|-
|Current share price
|3.65
|}
Magnitude: Millions (M)
{| class="wikitable"
| colspan="7" rowspan="1" |Sensitivity Table
|-
|
|
| colspan="5" rowspan="1" |Growth Rate
|-
|
|7
|3.50%
|4.00%
|4.50%
|5.00%
|5.50%
|-
| colspan="1" rowspan="5" |WACC
|5.21%
|6.943521281
|5.17055606
|5.17055606
|6.943521281
|17.96682183
|-
|5.71%
|10.11775476
|6.896522233
|6.896522233
|10.11775476
|62.28769622
|-
|6.21%
|10.11775476
|6.896522233
|6.896522233
|10.11775476
|62.28769622
|-
|6.71%
|6.943521281
|5.17055606
|5.17055606
|6.943521281
|17.96682183
|-
|7.21%
|4.11841452
|3.340505278
|3.340505278
|4.11841452
|7.037923491
|}