Discounted Cash Flow (DCF) Analysis Levered
Gerdau S.A. (GGB)
$5.9098
-0.17 (-2.80%)
All numbers are in Millions, Currency in USD
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 | 36,917.62 | 46,159.48 | 39,644.01 | 43,814.66 | 78,345.08 | 97,980.13 | 122,536.17 | 153,246.51 | 191,653.56 | 239,686.28 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,076.13 | 1,999.68 | 1,642.79 | 6,407.91 | 12,516.93 | 8,759.69 | 10,955.06 | 13,700.65 | 17,134.35 | 21,428.60 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -911.27 | -1,262.32 | -1,846.91 | -1,805.03 | -3,192.33 | -3,538.30 | -4,425.08 | -5,534.11 | -6,921.08 | -8,655.66 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,164.86 | 737.36 | -204.12 | 4,602.88 | 9,324.60 | 5,221.39 | 6,529.98 | 8,166.55 | 10,213.27 | 12,772.94 |
Weighted Average Cost Of Capital
| Share price | $ 5.9,098 |
|---|---|
| Beta | 1.218 |
| Diluted Shares Outstanding | 1,705.75 |
| Cost of Debt | |
| Tax Rate | 23.57 |
| After-tax Cost of Debt | 5.40% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.367 |
| Total Debt | 14,982.71 |
| Total Equity | 10,080.62 |
| Total Capital | 25,063.33 |
| Debt Weighting | 59.78 |
| Equity Weighting | 40.22 |
| 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 | 36,917.62 | 46,159.48 | 39,644.01 | 43,814.66 | 78,345.08 | 97,980.13 | 122,536.17 | 153,246.51 | 191,653.56 | 239,686.28 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,076.13 | 1,999.68 | 1,642.79 | 6,407.91 | 12,516.93 | 8,759.69 | 10,955.06 | 13,700.65 | 17,134.35 | 21,428.60 |
| Capital Expenditure | -911.27 | -1,262.32 | -1,846.91 | -1,805.03 | -3,192.33 | -3,538.30 | -4,425.08 | -5,534.11 | -6,921.08 | -8,655.66 |
| Free Cash Flow | 1,164.86 | 737.36 | -204.12 | 4,602.88 | 9,324.60 | 5,221.39 | 6,529.98 | 8,166.55 | 10,213.27 | 12,772.94 |
| WACC | ||||||||||
| PV LFCF | 3,479.23 | 4,066.55 | 4,753 | 5,555.34 | 6,493.12 | |||||
| SUM PV LFCF | 34,148.26 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.00 |
| Free cash flow (t + 1) | 13,028.40 |
| Terminal Value | 260,568.07 |
| Present Value of Terminal Value | 185,781.43 |
Intrinsic Value
| Enterprise Value | 219,929.69 |
|---|---|
| Net Debt | 10,822.05 |
| Equity Value | 209,107.64 |
| Shares Outstanding | 1,705.75 |
| Equity Value Per Share | 122.59 |