Discounted Cash Flow (DCF) Analysis Levered

Solvay SA (SOLB.BR)

102.7 €

-0.20 (-0.19%)

All numbers are in Millions, Currency in USD

Stock DCF: 253.28 | 102.7 | 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	11,299	11,227	9,714	11,435	16,071	17,844.64	19,814.03	22,000.77	24,428.85	27,124.89
Revenue (%)
Operating Cash Flow	1,720	1,815	1,242	1,499	2,006	2,489.89	2,764.68	3,069.80	3,408.59	3,784.77
Operating Cash Flow (%)
Capital Expenditure	-833	-857	-535	-636	-909	-1,132.47	-1,257.45	-1,396.22	-1,550.32	-1,721.41
Capital Expenditure (%)
Free Cash Flow	887	958	707	863	1,097	1,357.42	1,507.23	1,673.57	1,858.27	2,063.36

Weighted Average Cost Of Capital

Share price	$ 102.7
Beta	1.319
Diluted Shares Outstanding	104.14
Cost of Debt
Tax Rate	11.44
After-tax Cost of Debt	3.53%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.789
Total Debt	2,960
Total Equity	10,695.51
Total Capital	13,655.51
Debt Weighting	21.68
Equity Weighting	78.32
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	11,299	11,227	9,714	11,435	16,071	17,844.64	19,814.03	22,000.77	24,428.85	27,124.89
Operating Cash Flow	1,720	1,815	1,242	1,499	2,006	2,489.89	2,764.68	3,069.80	3,408.59	3,784.77
Capital Expenditure	-833	-857	-535	-636	-909	-1,132.47	-1,257.45	-1,396.22	-1,550.32	-1,721.41
Free Cash Flow	887	958	707	863	1,097	1,357.42	1,507.23	1,673.57	1,858.27	2,063.36
WACC
PV LFCF						1,251.89	1,281.98	1,312.79	1,344.35	1,376.66
SUM PV LFCF										6,567.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.43
Free cash flow (t + 1)	2,104.62
Terminal Value	32,731.31
Present Value of Terminal Value	21,838.16

Intrinsic Value

Enterprise Value	28,405.83
Net Debt	2,028
Equity Value	26,377.83
Shares Outstanding	104.14
Equity Value Per Share	253.28