Discounted Cash Flow (DCF) Analysis Levered

Ambev S.A. (ABEV)

$2.57

-0.05 (-1.91%)

All numbers are in Millions, Currency in USD

Stock DCF: 18.70 | 2.57 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	50,231.30	52,599.70	58,379	72,854.30	79,708.80	89,653.71	100,839.40	113,420.68	127,571.67	143,488.22
Revenue (%)
Operating Cash Flow	17,911.20	18,381.30	18,855.80	22,901	20,642.20	28,730.97	32,315.60	36,347.48	40,882.39	45,983.10
Operating Cash Flow (%)
Capital Expenditure	-3,571	-5,069.40	-4,692.70	-7,677.10	-6,533.10	-7,803.27	-8,776.85	-9,871.90	-11,103.57	-12,488.92
Capital Expenditure (%)
Free Cash Flow	14,340.20	13,311.90	14,163.10	15,223.90	14,109.10	20,927.70	23,538.75	26,475.57	29,778.81	33,494.18

Weighted Average Cost Of Capital

Share price	$ 2.57
Beta	0.626
Diluted Shares Outstanding	15,848.60
Cost of Debt
Tax Rate	-1.56
After-tax Cost of Debt	60.55%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.513
Total Debt	3,845
Total Equity	40,730.90
Total Capital	44,575.90
Debt Weighting	8.63
Equity Weighting	91.37
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	50,231.30	52,599.70	58,379	72,854.30	79,708.80	89,653.71	100,839.40	113,420.68	127,571.67	143,488.22
Operating Cash Flow	17,911.20	18,381.30	18,855.80	22,901	20,642.20	28,730.97	32,315.60	36,347.48	40,882.39	45,983.10
Capital Expenditure	-3,571	-5,069.40	-4,692.70	-7,677.10	-6,533.10	-7,803.27	-8,776.85	-9,871.90	-11,103.57	-12,488.92
Free Cash Flow	14,340.20	13,311.90	14,163.10	15,223.90	14,109.10	20,927.70	23,538.75	26,475.57	29,778.81	33,494.18
WACC
PV LFCF						18,670.44	18,734.83	18,799.43	18,864.27	18,929.32
SUM PV LFCF										93,998.29

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	12.09
Free cash flow (t + 1)	34,164.07
Terminal Value	338,593.32
Present Value of Terminal Value	191,356.86

Intrinsic Value

Enterprise Value	285,355.14
Net Debt	-11,081.40
Equity Value	296,436.54
Shares Outstanding	15,848.60
Equity Value Per Share	18.70