Discounted Cash Flow (DCF) Analysis Levered

Fomento Económico Mexicano, S.A.B. ... (FMX)

$60.88

+0.90 (+1.50%)
All numbers are in Millions, Currency in USD
Stock DCF: 3,637.49 | 60.88 | 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 460,456469,744506,711492,966556,261584,093.20613,317.97644,004.99676,227.41710,062.06
Revenue (%)
Operating Cash Flow 40,13547,41461,63853,17373,09064,133.5967,342.4770,711.9274,249.9577,965
Operating Cash Flow (%)
Capital Expenditure -24,184-23,377-25,123-20,142-20,299-26,776.99-28,116.76-29,523.57-31,000.76-32,551.87
Capital Expenditure (%)
Free Cash Flow 15,95124,03736,51533,03152,79137,356.6039,225.7141,188.3543,249.1945,413.13

Weighted Average Cost Of Capital

Share price $ 60.88
Beta 0.502
Diluted Shares Outstanding 357.82
Cost of Debt
Tax Rate 30.96
After-tax Cost of Debt 4.74%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.335
Total Debt 246,851
Total Equity 21,784.24
Total Capital 268,635.24
Debt Weighting 91.89
Equity Weighting 8.11
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 460,456469,744506,711492,966556,261584,093.20613,317.97644,004.99676,227.41710,062.06
Operating Cash Flow 40,13547,41461,63853,17373,09064,133.5967,342.4770,711.9274,249.9577,965
Capital Expenditure -24,184-23,377-25,123-20,142-20,299-26,776.99-28,116.76-29,523.57-31,000.76-32,551.87
Free Cash Flow 15,95124,03736,51533,03152,79137,356.6039,225.7141,188.3543,249.1945,413.13
WACC
PV LFCF 35,621.8235,667.1435,712.5335,757.9735,803.47
SUM PV LFCF 178,562.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.87
Free cash flow (t + 1) 46,321.40
Terminal Value 1,613,985.95
Present Value of Terminal Value 1,272,457.87

Intrinsic Value

Enterprise Value 1,451,020.79
Net Debt 149,444
Equity Value 1,301,576.79
Shares Outstanding 357.82
Equity Value Per Share 3,637.49