Burberry plc Valuation
Horizon Period 7 years
Operating Profit next year 570m
Growth 9.20%
ROIC % 17.54%
Cost of Capital % 11.21%
Reinvestment 52.46%
Continuing Perpetuity After year 7
Growth (Industry average) 4.12%
ROIC (Estimate) 10.54%
Reinvestment 39.07%
Cost of Capital 11.21%
May-23
3.54% Rf UK Gilt 7 year bond yield 3.54%
Beta 1.41 (Average) 1.41
RP 5.44% Estimate 5.44%
Cost of Capital after perpetuity 12.24%
Growth Perp Perpetuity
1.09 34.32% Growth 4.12%
Year 0 1 2 3 4 5 6 7 8
Operating Profit (£m) 570.00 622.44 679.70 742.24 810.52 885.09 966.52 1006.34
Reinvestment -299.04 -326.55 -356.60 -389.40 -425.23 -464.35 -377.62 -393.18
Free Cash Flow 270.96 295.89 323.11 352.83 385.29 420.74 588.90 613.16 c/r-g
0.08 7545.6684312
1.11 1.24 1.38 1.53 1.70 1.89 2.10 2.10
Company Valuation 5263.86 243.64 239.24 234.92 230.67 226.50 222.40 279.91 3586.57
Horizon Period 7 years
Operating Profit next year 570m
Growth 9.20%
ROIC % 17.54%
Cost of Capital % 11.21%
Reinvestment 52.46%
Continuing Perpetuity After year 7
Growth (Industry average) 4.12%
ROIC (Estimate) 10.54%
Reinvestment 39.07%
Cost of Capital 11.21%
May-23
3.54% Rf UK Gilt 7 year bond yield 3.54%
Beta 1.41 (Average) 1.41
RP 5.44% Estimate 5.44%
Cost of Capital after perpetuity 12.24%
Growth Perp Perpetuity
1.09 34.32% Growth 4.12%
Year 0 1 2 3 4 5 6 7 8
Operating Profit (£m) 570.00 622.44 679.70 742.24 810.52 885.09 966.52 1006.34
Reinvestment -299.04 -326.55 -356.60 -389.40 -425.23 -464.35 -377.62 -393.18
Free Cash Flow 270.96 295.89 323.11 352.83 385.29 420.74 588.90 613.16 c/r-g
0.08 7545.6684312
1.11 1.24 1.38 1.53 1.70 1.89 2.10 2.10
Company Valuation 5263.86 243.64 239.24 234.92 230.67 226.50 222.40 279.91 3586.57
