Discounted Cash Flow (DCF) Analysis Levered

Itaú Unibanco Holding S.A. (ITUB)

$4.735

-0.13 (-2.77%)
All numbers are in Millions, Currency in USD
Stock DCF: 30.14 | 4.735 | 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 105,661100,644112,12193,766121,833127,990.95134,460.15141,256.33148,396.02155,896.57
Revenue (%)
Operating Cash Flow 8,64222,70935,22459,49160,10644,781.4047,044.8449,422.6951,920.7154,545.01
Operating Cash Flow (%)
Capital Expenditure -3,594-2,864-4,312-5,307-9,081-5,940.43-6,240.68-6,556.11-6,887.49-7,235.61
Capital Expenditure (%)
Free Cash Flow 5,04819,84530,91254,18451,02538,840.9740,804.1642,866.5745,033.2347,309.39

Weighted Average Cost Of Capital

Share price $ 4.735
Beta 0.506
Diluted Shares Outstanding 9,831.33
Cost of Debt
Tax Rate 36.63
After-tax Cost of Debt 13.67%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.007
Total Debt 321,219
Total Equity 46,551.36
Total Capital 367,770.36
Debt Weighting 87.34
Equity Weighting 12.66
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 105,661100,644112,12193,766121,833127,990.95134,460.15141,256.33148,396.02155,896.57
Operating Cash Flow 8,64222,70935,22459,49160,10644,781.4047,044.8449,422.6951,920.7154,545.01
Capital Expenditure -3,594-2,864-4,312-5,307-9,081-5,940.43-6,240.68-6,556.11-6,887.49-7,235.61
Free Cash Flow 5,04819,84530,91254,18451,02538,840.9740,804.1642,866.5745,033.2347,309.39
WACC
PV LFCF 34,464.0432,125.9929,946.5627,914.9926,021.23
SUM PV LFCF 150,472.81

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.70
Free cash flow (t + 1) 48,255.58
Terminal Value 450,986.75
Present Value of Terminal Value 248,052.84

Intrinsic Value

Enterprise Value 398,525.65
Net Debt 102,173
Equity Value 296,352.65
Shares Outstanding 9,831.33
Equity Value Per Share 30.14