Discounted Cash Flow (DCF) Analysis Levered

Telefônica Brasil S.A. (VIV)

$8.35

+0.01 (+0.12%)
All numbers are in Millions, Currency in USD
Stock DCF: 97.49 | 8.35 | 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 43,462.7444,268.1743,126.4744,032.6148,041.1649,299.7050,591.2051,916.5453,276.6054,672.29
Revenue (%)
Operating Cash Flow 11,941.4317,721.2019,341.7518,072.6018,941.9219,012.6919,510.7720,021.8920,546.4121,084.66
Operating Cash Flow (%)
Capital Expenditure -8,517.46-8,838.64-8,289.26-9,295.48-9,894.12-9,908.22-10,167.78-10,434.15-10,707.49-10,988
Capital Expenditure (%)
Free Cash Flow 3,423.978,882.5611,052.498,777.129,047.819,104.479,342.989,587.749,838.9110,096.66

Weighted Average Cost Of Capital

Share price $ 8.35
Beta 0.018
Diluted Shares Outstanding 1,670.85
Cost of Debt
Tax Rate 15.45
After-tax Cost of Debt 9.62%
Risk-Free Rate
Market Risk Premium
Cost of Equity 3.777
Total Debt 19,301.80
Total Equity 13,951.61
Total Capital 33,253.40
Debt Weighting 58.04
Equity Weighting 41.96
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 43,462.7444,268.1743,126.4744,032.6148,041.1649,299.7050,591.2051,916.5453,276.6054,672.29
Operating Cash Flow 11,941.4317,721.2019,341.7518,072.6018,941.9219,012.6919,510.7720,021.8920,546.4121,084.66
Capital Expenditure -8,517.46-8,838.64-8,289.26-9,295.48-9,894.12-9,908.22-10,167.78-10,434.15-10,707.49-10,988
Free Cash Flow 3,423.978,882.5611,052.498,777.129,047.819,104.479,342.989,587.749,838.9110,096.66
WACC
PV LFCF 8,495.368,134.657,789.277,458.557,141.87
SUM PV LFCF 39,019.69

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.17
Free cash flow (t + 1) 10,298.60
Terminal Value 199,199.14
Present Value of Terminal Value 140,903.34

Intrinsic Value

Enterprise Value 179,923.03
Net Debt 17,027.96
Equity Value 162,895.07
Shares Outstanding 1,670.85
Equity Value Per Share 97.49