The Discounted Cash Flow (DCF) valuation of WM Morrison Supermarkets PLC (MRW.L) is 201.32 GBP. With the latest stock price at 286.40 GBP, the upside of WM Morrison Supermarkets PLC based on DCF is -29.7%.

Is MRW.L a buy or a sell?

Based on the latest price of 286.40 GBP and our DCF valuation, WM Morrison Supermarkets PLC (MRW.L) is a sell. Selling MRW.L stocks now will result in a potential gain of 29.7%.

	Range	Selected
WACC / Discount Rate	5.5% - 7.3%	6.4%
Long-term Growth Rate	2.0% - 4.0%	3.0%
Fair Price	92.54 - 578.47	201.32
Upside	-67.7% - 102.0%	-29.7%

286.40 GBP

Stock Price

201.32 GBP

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

MRW.L DCF Valuation: Revenue & Expenses Forecast

(GBP in millions)		Projections

	01-2021	01-2022	01-2023	01-2024	01-2025	01-2026

Revenue	17,598	18,015	18,376	18,705	19,576	20,679
% Growth	0%	2%	2%	2%	5%	6%

Cost of goods sold	(17,097)	(17,502)	(17,853)	(18,172)	(19,019)	(20,091)
% of Revenue	97%	97%	97%	97%	97%	97%

Selling, G&A expenses	(287)	(294)	(300)	(305)	(319)	(337)
% of Revenue	2%	2%	2%	2%	2%	2%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	(49)	(50)	(51)	(52)	(55)	(58)
% of Revenue	0%	0%	0%	0%	0%	0%

Tax expense	(69)	(34)	(34)	(35)	(37)	(39)
Tax rate	42%	20%	20%	20%	20%	20%

Net profit	96	135	138	140	147	155
% Margin	1%	1%	1%	1%	1%	1%