Albertsons Companies, Inc.

AI-generated fair value estimate for this company.

Method: 10-year FCFE (free-cash-flow-to-equity) DCF, discounted directly to equity value since the FCF base is already net of interest: $650M normalized Year-1 FCF (average of actual OCF-minus-capex FCF of $700M FY2023, $628M FY2024, $749M FY2025 and $564M TTM); FCF grows 2%/yr years 1-5 and 2.5%/yr years 6-10; 10.5% discount rate (cost of equity); 2% terminal growth; no separate net-debt subtraction applied because operating cash flow already reflects interest paid on Albertsons' ~$8.4B long-term debt (vs. $293M cash); 485.33M shares outstanding.

Reasoning: Albertsons is a low-growth, mature, highly levered grocer with consistent but volatile free cash flow, so a direct FCFE approach discounted at a cost of equity avoids double-counting Albertsons' large, lease-inclusive 'total debt' figure in an EV-to-equity bridge; the modest 2-2.5% growth reflects industry-typical low same-store-sales growth and the softer consumer demand the company itself has flagged in 2026.