Discounted Cash Flow (DCF) Analysis Levered

Telecom Argentina S.A. (TEO)

$5.19

+0.09 (+1.76%)
All numbers are in Millions, Currency in USD
Stock DCF: 4,542.36 | 5.19 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 168,046237,024301,596404,575.81542,718.03728,028.85976,613.961,310,078.341,757,403.972,357,468.73
Revenue (%)
Operating Cash Flow 42,42681,933101,325130,035214,024240,230.54322,257.15432,291.70579,897.49777,903.22
Operating Cash Flow (%)
Capital Expenditure -42,480-50,798-54,360-76,126-122,475-154,513.51-207,272.07-278,045.03-372,983.37-500,338.37
Capital Expenditure (%)
Free Cash Flow -5431,13546,96553,90991,54985,717.03114,985.07154,246.67206,914.12277,564.86

Weighted Average Cost Of Capital

Share price $ 5.19
Beta 0.847
Diluted Shares Outstanding 430.74
Cost of Debt
Tax Rate 10.47
After-tax Cost of Debt 11.14%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.689
Total Debt 498,067
Total Equity 2,235.53
Total Capital 500,302.53
Debt Weighting 99.55
Equity Weighting 0.45
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 168,046237,024301,596404,575.81542,718.03728,028.85976,613.961,310,078.341,757,403.972,357,468.73
Operating Cash Flow 42,42681,933101,325130,035214,024240,230.54322,257.15432,291.70579,897.49777,903.22
Capital Expenditure -42,480-50,798-54,360-76,126-122,475-154,513.51-207,272.07-278,045.03-372,983.37-500,338.37
Free Cash Flow -5431,13546,96553,90991,54985,717.03114,985.07154,246.67206,914.12277,564.86
WACC
PV LFCF 59,903.6891,54977,139.1693,123.01112,418.84135,712.92163,833.73
SUM PV LFCF 582,227.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.12
Free cash flow (t + 1) 283,116.15
Terminal Value 3,104,343.78
Present Value of Terminal Value 1,832,350.90

Intrinsic Value

Enterprise Value 2,414,578.56
Net Debt 458,015
Equity Value 1,956,563.56
Shares Outstanding 430.74
Equity Value Per Share 4,542.36