Discounted Cash Flow (DCF) Analysis Levered

Itaú Unibanco Holding S.A. (ITUB)

$6.985

-0.06 (-0.78%)
All numbers are in Millions, Currency in USD
Stock DCF: 3,171.41 | 6.985 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 112,12194,681121,833138,600344,760496,135.15713,975.191,027,463.121,478,595.452,127,808.26
Revenue (%)
Operating Cash Flow 35,22459,49160,106129,966116,924269,172.24387,358.76557,437.92802,194.411,154,417.11
Operating Cash Flow (%)
Capital Expenditure -4,312-5,307-9,081-8,495-9,191-25,501.04-36,697.88-52,810.97-75,998.89-109,368.03
Capital Expenditure (%)
Free Cash Flow 30,91254,18451,025121,471107,733243,671.20350,660.88504,626.95726,195.521,045,049.09

Weighted Average Cost Of Capital

Share price $ 6.985
Beta 0.533
Diluted Shares Outstanding 9,866.57
Cost of Debt
Tax Rate 14.63
After-tax Cost of Debt 4.65%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.801
Total Debt 821,068
Total Equity 68,918.02
Total Capital 889,986.02
Debt Weighting 92.26
Equity Weighting 7.74
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 112,12194,681121,833138,600344,760496,135.15713,975.191,027,463.121,478,595.452,127,808.26
Operating Cash Flow 35,22459,49160,106129,966116,924269,172.24387,358.76557,437.92802,194.411,154,417.11
Capital Expenditure -4,312-5,307-9,081-8,495-9,191-25,501.04-36,697.88-52,810.97-75,998.89-109,368.03
Free Cash Flow 30,91254,18451,025121,471107,733243,671.20350,660.88504,626.95726,195.521,045,049.09
WACC
PV LFCF 232,466.32319,153.06438,165.30601,557.22825,878.03
SUM PV LFCF 2,417,219.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.82
Free cash flow (t + 1) 1,065,950.07
Terminal Value 37,799,647.89
Present Value of Terminal Value 29,872,184.13

Intrinsic Value

Enterprise Value 32,289,404.05
Net Debt 998,473
Equity Value 31,290,931.05
Shares Outstanding 9,866.57
Equity Value Per Share 3,171.41