Chewy DCF Valuation: Intrinsic Value Calculator

Chewy is the leading US online pet retailer with over $11B in annual net sales and a loyal subscription base via its Autoship program (generating ~80% of revenue). Gross margins of 30% reflect the logistics-heavy pet supply business, with operating margins recently turning positive at approximately 4%. Key assumptions: revenue grows at high-single-digit rates as pet ownership remains elevated post-pandemic, Autoship customer ARPU expands, and Chewy Health (veterinary telehealth and prescription management) provides a higher-margin incremental revenue stream. Beta of 1.45 reflects cyclical sensitivity in consumer discretionary spending.