Discounted Cash Flow (DCF) Analysis Levered

VEON Ltd. (VEON)

$0.4753

+0.01 (+1.47%)

All numbers are in Millions, Currency in USD

Stock DCF: 4.30 | 0.4753 | 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	9,474	9,086	8,863	7,980	7,788	7,419.66	7,068.73	6,734.41	6,415.90	6,112.45
Revenue (%)
Operating Cash Flow	2,475	2,515	2,949	2,443	2,639	2,249.29	2,142.91	2,041.56	1,945	1,853.01
Operating Cash Flow (%)
Capital Expenditure	-2,037	-1,948	-1,683	-1,778	-1,796	-1,591.83	-1,516.55	-1,444.82	-1,376.48	-1,311.38
Capital Expenditure (%)
Free Cash Flow	438	567	1,266	665	843	657.46	626.37	596.74	568.52	541.63

Weighted Average Cost Of Capital

Share price	$ 0.4,753
Beta	1.516
Diluted Shares Outstanding	1,753
Cost of Debt
Tax Rate	25.77
After-tax Cost of Debt	4.81%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.280
Total Debt	10,646
Total Equity	833.20
Total Capital	11,479.20
Debt Weighting	92.74
Equity Weighting	7.26
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	9,474	9,086	8,863	7,980	7,788	7,419.66	7,068.73	6,734.41	6,415.90	6,112.45
Operating Cash Flow	2,475	2,515	2,949	2,443	2,639	2,249.29	2,142.91	2,041.56	1,945	1,853.01
Capital Expenditure	-2,037	-1,948	-1,683	-1,778	-1,796	-1,591.83	-1,516.55	-1,444.82	-1,376.48	-1,311.38
Free Cash Flow	438	567	1,266	665	843	657.46	626.37	596.74	568.52	541.63
WACC
PV LFCF						624.90	565.87	512.41	464	420.16
SUM PV LFCF										2,587.33

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.21
Free cash flow (t + 1)	552.46
Terminal Value	17,210.61
Present Value of Terminal Value	13,350.92

Intrinsic Value

Enterprise Value	15,938.25
Net Debt	8,394
Equity Value	7,544.25
Shares Outstanding	1,753
Equity Value Per Share	4.30