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 50,231.3052,599.7058,37972,854.3079,708.8089,653.71100,839.40113,420.68127,571.67143,488.22
Revenue (%)
Operating Cash Flow 17,911.2018,381.3018,855.8022,90120,642.2028,730.9732,315.6036,347.4840,882.3945,983.10
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 14,340.2013,311.9014,163.1015,223.9014,109.1020,927.7023,538.7526,475.5729,778.8133,494.18

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 50,231.3052,599.7058,37972,854.3079,708.8089,653.71100,839.40113,420.68127,571.67143,488.22
Operating Cash Flow 17,911.2018,381.3018,855.8022,90120,642.2028,730.9732,315.6036,347.4840,882.3945,983.10
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 14,340.2013,311.9014,163.1015,223.9014,109.1020,927.7023,538.7526,475.5729,778.8133,494.18
WACC
PV LFCF 18,670.4418,734.8318,799.4318,864.2718,929.32
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