Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Hasbro, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 4.3% to 4.0% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 79, DPO 76, DIO 75). At a 8.1% WACC with mid-year discounting, the terminal value (83% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 18.8x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $167.71 per share, suggesting HAS is undervalued by 83.6% at the current price of $91.35.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 1,148 | 1,226 | 1,257 | 1,288 | 1,339 | 1,372 |
| (−) Net Interest | 167 | 179 | 183 | 188 | 195 | 200 |
| (+) D&A | 133 | 132 | 123 | 109 | 119 | 122 |
| EBITDA | 1,448 | 1,536 | 1,564 | 1,584 | 1,653 | 1,695 |
| (−) Tax | 261 | 279 | 286 | 293 | 304 | — |
| (−) CapEx | 124 | 133 | 136 | 140 | 145 | — |
| (−) ΔWC | 72 | 72 | 29 | 28 | 47 | — |
| Free Cash Flow (FCF) | 990 | 1,053 | 1,113 | 1,124 | 1,157 | — |
| Peers' EBITDA Multiple | 18.8x | |||||
| Terminal Value | 31,894 | |||||
| WACC / Discount Rate | 8.05% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 953 | 937 | 917 | 857 | 817 | 21,660 |
| Enterprise Value | 26,141 | |||||
| Projection Period | 4,481 | 17.1% | ||||
| Terminal Value | 21,660 | 82.9% | ||||
| (−) Current Net Debt | 2,625 | |||||
| Equity Value | 23,517 | |||||
| (÷) Outstanding Shares | 140M | |||||
| Fair Price | $168 | +83.6% | ||||
| WACC \ EV/EBITDA Exit Multiple | 14.8x | 16.8x | 18.8x | 20.8x | 22.8x |
|---|---|---|---|---|---|
| 6.0% | $148 | $166 | $184 | $202 | $220 |
| 7.0% | $141 | $159 | $176 | $193 | $210 |
| 8.0% | $135 | $151 | $168 | $184 | $201 |
| 9.0% | $129 | $144 | $160 | $176 | $191 |
| 10.0% | $123 | $138 | $153 | $168 | $183 |
Current price: $91.35. Green = undervalued, Red = overvalued.
Based on default parameters
This is an unlevered Free Cash Flow to Firm (FCFF) model with a 5-year projection period. Revenue, expenses, D&A, and working capital are projected using the same line-by-line approach as the Growth Exit models. The key difference is the terminal value methodology: instead of assuming perpetual cash flow growth, the terminal value is calculated by applying the industry peer median EV/EBITDA multiple to the projected Year 6 EBITDA.
Using a peer exit multiple anchors the terminal value to how the market currently prices comparable companies, rather than relying on a theoretical perpetual growth assumption. This approach captures relative valuation dynamics and is particularly useful when a company is expected to converge toward industry-average profitability over time. The sensitivity matrix shows how fair value changes across different WACC and EV/EBITDA multiple scenarios.