Discounted Cash Flow (DCF) Analysis Unlevered

Banco Bradesco S.A. (BBD)

$2.76

-0.03 (-1.08%)
All numbers are in Millions, Currency in USD
Stock DCF: 16.54 | 2.76 | undervalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 88,790.7599,281.0282,368.59102,428.58109,001.11115,963.64123,370.91131,251.33139,635.11148,554.42
Revenue (%)
EBITDA 79,330.4219,096.669,799.2338,416.78160,950.9270,886.9475,414.9080,232.0885,356.9790,809.22
EBITDA (%)
EBIT 74,522.1613,230.893,878.2032,643.88155,287.7064,081.3668,174.6172,529.3277,162.1982,090.99
EBIT (%)
Depreciation 4,808.265,865.775,921.035,772.905,663.226,805.577,240.287,702.768,194.788,718.23
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 285,260.28320,756.11311,934.07321,937.22358,572.13386,465.69411,151.49437,414.12465,354.30495,079.18
Total Cash (%)
Account Receivables 17,654.3721,166.4923,792.8122,508.3225,765.8726,834.3328,548.4030,371.9532,311.9834,375.94
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable ----------
Accounts Payable (%)
Capital Expenditure -5,442.59-5,325.50-4,264.52-4,410.11-9,412.24-6,867.75-7,306.43-7,773.14-8,269.65-8,797.88
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 2.76
Beta 0.544
Diluted Shares Outstanding 10,676.16
Cost of Debt
Tax Rate 13.33
After-tax Cost of Debt 32.59%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.195
Total Debt 349,226.77
Total Equity 29,466.19
Total Capital 378,692.96
Debt Weighting 92.22
Equity Weighting 7.78
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 88,790.7599,281.0282,368.59102,428.58109,001.11115,963.64123,370.91131,251.33139,635.11148,554.42
EBITDA 79,330.4219,096.669,799.2338,416.78160,950.9270,886.9475,414.9080,232.0885,356.9790,809.22
EBIT 74,522.1613,230.893,878.2032,643.88155,287.7064,081.3668,174.6172,529.3277,162.1982,090.99
Tax Rate 14.70%-57.11%-288.61%29.47%13.33%-57.64%-57.64%-57.64%-57.64%-57.64%
EBIAT 63,566.9320,787.0715,070.9223,025.27134,593.79101,021107,473.80114,338.78121,642.26129,412.25
Depreciation 4,808.265,865.775,921.035,772.905,663.226,805.577,240.287,702.768,194.788,718.23
Accounts Receivable --3,512.12-2,626.331,284.49-3,257.55-1,068.46-1,714.06-1,823.55-1,940.03-2,063.95
Inventories ----------
Accounts Payable ----------
Capital Expenditure -5,442.59-5,325.50-4,264.52-4,410.11-9,412.24-6,867.75-7,306.43-7,773.14-8,269.65-8,797.88
UFCF 62,932.5917,815.2214,101.1125,672.55127,587.2299,890.36105,693.59112,444.85119,627.35127,268.65
WACC
PV UFCF 76,479.8761,957.7750,467.3241,107.8533,484.15
SUM PV UFCF 263,496.97

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 30.61
Free cash flow (t + 1) 129,814.02
Terminal Value 453,736.52
Present Value of Terminal Value 119,377.26

Intrinsic Value

Enterprise Value 382,874.23
Net Debt 206,242.92
Equity Value 176,631.31
Shares Outstanding 10,676.16
Equity Value Per Share 16.54