Discounted Cash Flow (DCF) Analysis Levered

Gerdau S.A. (GGB)

$5.9098

-0.17 (-2.80%)
All numbers are in Millions, Currency in USD
Stock DCF: 122.59 | 5.9098 | 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 36,917.6246,159.4839,644.0143,814.6678,345.0897,980.13122,536.17153,246.51191,653.56239,686.28
Revenue (%)
Operating Cash Flow 2,076.131,999.681,642.796,407.9112,516.938,759.6910,955.0613,700.6517,134.3521,428.60
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 1,164.86737.36-204.124,602.889,324.605,221.396,529.988,166.5510,213.2712,772.94

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 36,917.6246,159.4839,644.0143,814.6678,345.0897,980.13122,536.17153,246.51191,653.56239,686.28
Operating Cash Flow 2,076.131,999.681,642.796,407.9112,516.938,759.6910,955.0613,700.6517,134.3521,428.60
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 1,164.86737.36-204.124,602.889,324.605,221.396,529.988,166.5510,213.2712,772.94
WACC
PV LFCF 3,479.234,066.554,7535,555.346,493.12
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