VSCO
Victoria's Secret & Co. (VSCO)
Last Price$16.3(3.2%)
Market Cap$1,305.9M
DCF value
($13.7)
Overvalued (DCF value)
(184.0%)
Discount Rate
3.7%
Long-Term Growth Rate
2.5%
Stock quality
6/10
Good

VSCO DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Jan'20 ActualJan'21 ActualJan'22 ActualJan'23 ActualFeb'24 ActualFeb'25 EstimateFeb'26 EstimateFeb'27 EstimateFeb'28 EstimateFeb'29 EstimateFeb'30 EstimateFeb'31 EstimateFeb'32 EstimateFeb'33 EstimateFeb'34 EstimateFeb'35 Terminal
% growth
7,509.0
(7.3%)
5,413.0
(27.9%)
6,784.6
25.3%
6,344.0
(6.5%)
6,182.0
(2.6%)
6,207.7
0.4%
6,239.7
0.5%
6,361.3
1.9%
6,427.1
1.0%
6,507.0
1.2%
6,601.5
1.5%
6,711.2
1.7%
6,836.8
1.9%
6,979.1
2.1%
7,139.0
2.3%
7,317.5
2.5%
(171.0)
(2.3%)
(100.0)
(1.8%)
567.5
8.4%
478.0
3.2%
246.0
4.0%
131.7
2.1%
132.4
2.1%
135.0
2.1%
136.4
2.1%
138.1
2.1%
140.1
2.1%
142.4
2.1%
145.1
2.1%
148.1
2.1%
151.5
2.1%
155.2
2.1%
NOPAT
% effective tax rate
(170.6)
(2.3%)
(67.9)
(1.3%)
435.1
6.4%
387.4
6.1%
194.1
3.1%
103.9
1.7%
104.5
1.7%
106.5
1.7%
107.6
1.7%
108.9
1.7%
110.5
1.7%
112.4
1.7%
114.5
1.7%
116.8
1.7%
119.5
1.7%
122.5
1.7%
% of revenue
411.0
5.5%
326.0
6.0%
303.0
4.5%
274.0
4.3%
284.0
4.6%
276.8
4.5%
278.3
4.5%
283.7
4.5%
286.6
4.5%
290.2
4.5%
294.4
4.5%
299.3
4.5%
304.9
4.5%
311.2
4.5%
318.4
4.5%
326.3
4.5%
% of revenue
(225.0)
(3.0%)
(127.0)
(2.3%)
(169.0)
(2.5%)
(164.0)
(2.6%)
(256.0)
(4.1%)
(190.7)
(3.1%)
(191.7)
(3.1%)
(195.4)
(3.1%)
(197.5)
(3.1%)
(199.9)
(3.1%)
(202.8)
(3.1%)
(206.2)
(3.1%)
(210.1)
(3.1%)
(214.4)
(3.1%)
(219.3)
(3.1%)
(224.8)
(3.1%)
(190.0)
(2.5%)
298.0
5.5%
(132.0)
(1.9%)
(195.0)
(3.1%)
(80.0)
(1.3%)
(130.6)
(2.1%)
(131.3)
(2.1%)
(133.9)
(2.1%)
(135.3)
(2.1%)
(136.9)
(2.1%)
(138.9)
(2.1%)
(141.2)
(2.1%)
(143.9)
(2.1%)
(146.9)
(2.1%)
(150.2)
(2.1%)
(154.0)
(2.1%)
Free Cash Flow to Firm (FCFF)
% of revenue
(174.6)
(2.3%)
429.1
7.9%
437.1
6.4%
79.7
1.3%
142.1
2.3%
59.4
1.0%
59.7
1.0%
60.9
1.0%
61.5
1.0%
62.3
1.0%
63.2
1.0%
64.2
1.0%
65.4
1.0%
66.8
1.0%
68.3
1.0%
70.0
1.0%
% of FCFF used in calculation
100.0%
90.1%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
Discount factor
0.98
0.95
0.91
0.88
0.85
0.82
0.79
0.76
0.74
Discounted FCFF (DFCFF)
52.9
57.7
56.2
54.9
53.7
52.7
51.7
50.9
50.3

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VSCO DCF Value

DCF Value Calculation

as of Mar 11, 2025
Sum of DFCFF
% share of EV
480.9M
30.0%
Terminal Value (TV)
1,525.4M
Discounted TV
% share of EV
1,122.1M
70.0%
Total Debt
2,970.0M
(1,097.0M)
Shares outstanding
80.4M
FX rate
1.0
(13.7)
184% overvalued

Equity Value Bridge

VSCO DCF Financials

Revenue
$6,182.0M -> $7,139.0M 1.4% CAGR
Operating Income
$246.0M -> $151.5M (4.7%) CAGR
FCFF
$142.1M -> $68.3M (7.1%) CAGR

VSCO DCF sensitivity

DCF value
Long-term Terminal growth rate
1.5%
2.0%
2.5%
3.0%
3.5%
WACC
3.0%
($13.0)
($13.0)
($13.0)
($13.0)
($13.0)
3.5%
($13.0)
($13.0)
($13.0)
($13.0)
($13.0)
3.7%
($14.0)
($14.0)
($14.0)
($14.0)
($14.0)
4.5%
($14.0)
($14.0)
($14.0)
($14.0)
($14.0)
5.0%
($15.0)
($15.0)
($15.0)
($15.0)
($15.0)
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.5%
2.0%
2.5%
3.0%
3.5%
WACC
3.0%
(180.0%)
(180.0%)
(180.0%)
(180.0%)
(180.0%)
3.5%
(180.0%)
(180.0%)
(180.0%)
(180.0%)
(180.0%)
3.7%
(186.0%)
(186.0%)
(186.0%)
(186.0%)
(186.0%)
4.5%
(186.0%)
(186.0%)
(186.0%)
(186.0%)
(186.0%)
5.0%
(192.0%)
(192.0%)
(192.0%)
(192.0%)
(192.0%)

Explore more intrinsic value tools hub for VSCO

FAQ

What is Victoria's Secret & Co. DCF (discounted cash flow) valuation?

As of Mar 11, 2025, Victoria's Secret & Co.'s Discounted Cash Flow (DCF) valuation estimates its share price at ($13.7). This suggests it may be overvalued by (184.0%) compared to its current price of around $16.3, using a WACC of 3.7% and growth rates of 2.5%.

What is Victoria's Secret & Co. WACC?

As of Mar 11, 2025, Victoria's Secret & Co.'s Weighted Average Cost of Capital (WACC) is approximately 3.7%.

What is Victoria's Secret & Co. Enterprise Value?

As of Mar 11, 2025, Victoria's Secret & Co.'s Enterprise Value (EV) is approximately $1,603.0M. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.