Discounted Cash Flow (DCF) Analysis Levered

Grendene S.A. (GRND3.SA)

$7.06

-0.09 (-1.26%)

All numbers are in Millions, Currency in USD

Stock DCF: 9.62 | 7.06 | 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	2,333.45	2,071.03	1,896.79	2,342.55	2,512.66	2,582.40	2,654.08	2,727.75	2,803.47	2,881.29
Revenue (%)
Operating Cash Flow	483.83	426.83	108.89	556.40	536.08	476.05	489.26	502.84	516.80	531.15
Operating Cash Flow (%)
Capital Expenditure	-72.27	-52.43	-66.25	-105.72	-173.13	-106.01	-108.95	-111.97	-115.08	-118.28
Capital Expenditure (%)
Free Cash Flow	411.57	374.40	42.64	450.67	362.94	370.04	380.31	390.87	401.72	412.87

Weighted Average Cost Of Capital

Share price	$ 7.06
Beta	0.545
Diluted Shares Outstanding	902.18
Cost of Debt
Tax Rate	1.27
After-tax Cost of Debt	5.76%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.384
Total Debt	150.55
Total Equity	6,369.40
Total Capital	6,519.94
Debt Weighting	2.31
Equity Weighting	97.69
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	2,333.45	2,071.03	1,896.79	2,342.55	2,512.66	2,582.40	2,654.08	2,727.75	2,803.47	2,881.29
Operating Cash Flow	483.83	426.83	108.89	556.40	536.08	476.05	489.26	502.84	516.80	531.15
Capital Expenditure	-72.27	-52.43	-66.25	-105.72	-173.13	-106.01	-108.95	-111.97	-115.08	-118.28
Free Cash Flow	411.57	374.40	42.64	450.67	362.94	370.04	380.31	390.87	401.72	412.87
WACC
PV LFCF						347.88	336.13	324.77	313.79	303.19
SUM PV LFCF										1,625.76

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.37
Free cash flow (t + 1)	421.13
Terminal Value	9,636.78
Present Value of Terminal Value	7,076.79

Intrinsic Value

Enterprise Value	8,702.55
Net Debt	23.14
Equity Value	8,679.41
Shares Outstanding	902.18
Equity Value Per Share	9.62