Discounted Cash Flow (DCF) Analysis Unlevered

Embotelladora Andina S.A. (AKO-A)

$11.6

0.00 (0.00%)

All numbers are in Millions, Currency in USD

Stock DCF: 14,104.57 | 11.6 | undervalue

Operating Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	1,848,878.62	1,672,915.79	1,779,025.11	1,698,281.23	2,216,732.59	2,343,168.63	2,476,816.22	2,618,086.69	2,767,414.81	2,925,260.18
Revenue (%)
EBITDA	224,853.80	207,182.89	274,379.52	224,019.43	251,583.06	302,312.90	319,555.96	337,782.51	357,048.65	377,413.68
EBITDA (%)
EBIT	-	-	-	-	-	302,312.90	319,555.96	337,782.51	357,048.65	377,413.68
EBIT (%)
Depreciation	-	-	-	-	-	-	-	-	-	-
Depreciation (%)

Balance Sheet Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Total Cash	150,380.28	137,552.66	157,915.27	449,835.55	499,782.78	348,035.73	367,886.69	388,869.89	411,049.91	434,495.01
Total Cash (%)
Account Receivables	188,766.49	177,440.84	211,909.34	206,349.25	287,156.54	271,022.74	286,481.10	302,821.15	320,093.20	338,350.39
Account Receivables (%)
Inventories	131,362.99	151,319.72	147,641.22	127,972.66	191,350.20	190,343.93	201,200.60	212,676.50	224,806.96	237,629.30
Inventories (%)
Accounts Payable	257,519.47	238,109.85	243,700.56	230,445.81	327,409.21	328,978.25	347,742.22	367,576.44	388,541.94	410,703.25
Accounts Payable (%)
Capital Expenditure	-180,781.13	-121,063.28	-111,131.57	-86,082.85	-144,027.30	-163,212.99	-172,522.19	-182,362.36	-192,763.78	-203,758.47
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 11.6
Beta	0.330
Diluted Shares Outstanding	157.76
Cost of Debt
Tax Rate	23.87
After-tax Cost of Debt	3.59%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.074
Total Debt	1,074,650.46
Total Equity	1,830.04
Total Capital	1,076,480.50
Debt Weighting	99.83
Equity Weighting	0.17
Wacc

Build Up Free Cash

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	1,848,878.62	1,672,915.79	1,779,025.11	1,698,281.23	2,216,732.59	2,343,168.63	2,476,816.22	2,618,086.69	2,767,414.81	2,925,260.18
EBITDA	224,853.80	207,182.89	274,379.52	224,019.43	251,583.06	302,312.90	319,555.96	337,782.51	357,048.65	377,413.68
EBIT	-	-	-	-	-	302,312.90	319,555.96	337,782.51	357,048.65	377,413.68
Tax Rate	31.01%	36.87%	26.52%	31.47%	23.87%	29.95%	29.95%	29.95%	29.95%	29.95%
EBIAT	-	-	-	-	-	211,779.03	223,858.30	236,626.53	250,123.03	264,389.32
Depreciation	-	-	-	-	-	-	-	-	-	-
Accounts Receivable	-	11,325.65	-34,468.50	5,560.09	-80,807.28	16,133.80	-15,458.36	-16,340.06	-17,272.05	-18,257.19
Inventories	-	-19,956.72	3,678.49	19,668.57	-63,377.54	1,006.27	-10,856.67	-11,475.90	-12,130.46	-12,822.34
Accounts Payable	-	-19,409.62	5,590.70	-13,254.75	96,963.40	1,569.04	18,763.97	19,834.21	20,965.50	22,161.31
Capital Expenditure	-180,781.13	-121,063.27	-111,131.57	-86,082.85	-144,027.30	-163,212.99	-172,522.19	-182,362.36	-192,763.78	-203,758.47
UFCF	-	-	-	-	-	67,275.15	43,785.06	46,282.43	48,922.25	51,712.63
WACC
PV UFCF						64,937.40	40,794.95	41,623.34	42,468.54	43,330.91
SUM PV UFCF										233,155.14

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.60
Free cash flow (t + 1)	52,746.88
Terminal Value	3,296,680.12
Present Value of Terminal Value	2,762,345.72

Intrinsic Value

Enterprise Value	2,995,500.86
Net Debt	770,338.44
Equity Value	2,225,162.42
Shares Outstanding	157.76
Equity Value Per Share	14,104.57