Discounted Cash Flow (DCF) Analysis Levered

Natura &Co Holding S.A. (NTCO)

$4.35

+0.11 (+2.59%)
All numbers are in Millions, Currency in USD
Stock DCF: 131.23 | 4.35 | 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 $ 4.35
Beta 1.612
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 11.358
Total Debt 16,264.69
Total Equity 2,990.97
Total Capital 19,255.66
Debt Weighting 84.47
Equity Weighting 15.53
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 839.731,244.481,844.322,733.274,050.70
SUM PV LFCF 10,086.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.21
Free cash flow (t + 1) 5,257.66
Terminal Value 124,884.98
Present Value of Terminal Value 92,402.38

Intrinsic Value

Enterprise Value 102,488.53
Net Debt 12,257.44
Equity Value 90,231.10
Shares Outstanding 687.58
Equity Value Per Share 131.23