Discounted Cash Flow (DCF) Analysis Levered

BRF S.A. (BRFS)

$2.95

+0.19 (+6.88%)
All numbers are in Millions, Currency in USD
Stock DCF: -810.22 | 2.95 | overvalue

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 33,469.4030,188.4033,446.9839,469.7048,343.3153,356.5158,889.5864,996.4271,736.5579,175.63
Revenue (%)
Operating Cash Flow 652.70295.702,521.234,417.633,923.643,177.523,507.033,870.714,272.104,715.11
Operating Cash Flow (%)
Capital Expenditure -938.20-598.50-481.48-900.79-1,735.06-1,290.86-1,424.72-1,572.46-1,735.53-1,915.50
Capital Expenditure (%)
Free Cash Flow -285.50-302.802,039.753,516.842,188.581,886.662,082.312,298.242,536.572,799.61

Weighted Average Cost Of Capital

Share price $ 2.95
Beta 1.272
Diluted Shares Outstanding 849.54
Cost of Debt
Tax Rate 1,305.75
After-tax Cost of Debt -123.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.863
Total Debt 27,935.28
Total Equity 2,506.13
Total Capital 30,441.41
Debt Weighting 91.77
Equity Weighting 8.23
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 33,469.4030,188.4033,446.9839,469.7048,343.3153,356.5158,889.5864,996.4271,736.5579,175.63
Operating Cash Flow 652.70295.702,521.234,417.633,923.643,177.523,507.033,870.714,272.104,715.11
Capital Expenditure -938.20-598.50-481.48-900.79-1,735.06-1,290.86-1,424.72-1,572.46-1,735.53-1,915.50
Free Cash Flow -285.50-302.802,039.753,516.842,188.581,886.662,082.312,298.242,536.572,799.61
WACC
PV LFCF -15,009.24131,787.62-1,157,151.8810,160,290.61-89,211,716.33
SUM PV LFCF -80,091,799.23

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) -112.57
Free cash flow (t + 1) 2,855.61
Terminal Value -2,492.46
Present Value of Terminal Value 79,423,889.90

Intrinsic Value

Enterprise Value -667,909.33
Net Debt 20,406.46
Equity Value -688,315.79
Shares Outstanding 849.54
Equity Value Per Share -810.22