Discounted Cash Flow (DCF) Analysis Levered

Natura &Co Holding S.A. (NTCO)

$5.52

+0.17 (+3.18%)
All numbers are in Millions, Currency in USD
Stock DCF: 139.37 | 5.52 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 13,397.4214,444.6936,921.9840,164.6963,220.4199,510.81156,632.97246,544.94388,069.07
Revenue (%)
Operating Cash Flow 844.271,300.361,285.63-114.172,924.234,602.827,244.9811,403.8117,949.94
Operating Cash Flow (%)
Capital Expenditure -485.02-586.40-674.21-1,479.23-2,084.50-3,281.06-5,164.48-8,129.05-12,795.37
Capital Expenditure (%)
Free Cash Flow 359.25713.96611.42-1,593.40839.731,321.762,080.493,274.765,154.57

Weighted Average Cost Of Capital

Share price $ 5.52
Beta 1.181
Diluted Shares Outstanding 687.58
Cost of Debt
Tax Rate -1,048.41
After-tax Cost of Debt 5.26%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.214
Total Debt 16,264.69
Total Equity 3,795.44
Total Capital 20,060.13
Debt Weighting 81.08
Equity Weighting 18.92
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 13,397.4214,444.6936,921.9840,164.6963,220.4199,510.81156,632.97246,544.94388,069.07
Operating Cash Flow 844.271,300.361,285.63-114.172,924.234,602.827,244.9811,403.8117,949.94
Capital Expenditure -485.02-586.40-674.21-1,479.23-2,084.50-3,281.06-5,164.48-8,129.05-12,795.37
Free Cash Flow 359.25713.96611.42-1,593.40839.731,321.762,080.493,274.765,154.57
WACC
PV LFCF 839.731,246.831,851.282,748.774,081.36
SUM PV LFCF 10,157.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.01
Free cash flow (t + 1) 5,257.66
Terminal Value 131,113.65
Present Value of Terminal Value 97,929.55

Intrinsic Value

Enterprise Value 108,087.05
Net Debt 12,257.44
Equity Value 95,829.62
Shares Outstanding 687.58
Equity Value Per Share 139.37