Discounted Cash Flow (DCF) Analysis Levered

Ambev S.A. (ABEV)

$2.57

+0.05 (+1.98%)
All numbers are in Millions, Currency in USD
Stock DCF: 23.43 | 2.57 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 47,899.3050,231.3052,599.7058,37972,854.3081,117.1290,317.06100,560.43111,965.55124,664.19
Revenue (%)
Operating Cash Flow 17,874.1017,911.2018,381.3018,855.8022,90127,847.8331,006.2134,522.8038,438.2242,797.72
Operating Cash Flow (%)
Capital Expenditure -3,203.60-3,571-5,069.40-4,692.70-7,677.10-6,815.61-7,588.61-8,449.28-9,407.56-10,474.52
Capital Expenditure (%)
Free Cash Flow 14,670.5014,340.2013,311.9014,163.1015,223.9021,032.2223,417.6026,073.5229,030.6632,323.19

Weighted Average Cost Of Capital

Share price $ 2.57
Beta 0.912
Diluted Shares Outstanding 15,857.40
Cost of Debt
Tax Rate 7.91
After-tax Cost of Debt 42.53%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.428
Total Debt 3,100.50
Total Equity 40,753.52
Total Capital 43,854.02
Debt Weighting 7.07
Equity Weighting 92.93
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 47,899.3050,231.3052,599.7058,37972,854.3081,117.1290,317.06100,560.43111,965.55124,664.19
Operating Cash Flow 17,874.1017,911.2018,381.3018,855.8022,90127,847.8331,006.2134,522.8038,438.2242,797.72
Capital Expenditure -3,203.60-3,571-5,069.40-4,692.70-7,677.10-6,815.61-7,588.61-8,449.28-9,407.56-10,474.52
Free Cash Flow 14,670.5014,340.2013,311.9014,163.1015,223.9021,032.2223,417.6026,073.5229,030.6632,323.19
WACC
PV LFCF 19,135.8519,385.0919,637.5819,893.3620,152.47
SUM PV LFCF 98,204.35

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.91
Free cash flow (t + 1) 32,969.66
Terminal Value 416,809.82
Present Value of Terminal Value 259,867.46

Intrinsic Value

Enterprise Value 358,071.82
Net Debt -13,527.20
Equity Value 371,599.02
Shares Outstanding 15,857.40
Equity Value Per Share 23.43