Discounted Cash Flow (DCF) Analysis Unlevered

Banco Bradesco S.A. (BBDO)

$2.77

+0.06 (+2.05%)

All numbers are in Millions, Currency in USD

Stock DCF: 39.25 | 2.77 | 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	88,790.75	99,281.02	82,368.59	102,428.58	109,001.11	115,963.64	123,370.91	131,251.33	139,635.11	148,554.42
Revenue (%)
EBITDA	79,330.42	77,714.65	58,374.91	93,538.11	160,950.92	110,739.10	117,812.65	125,338.03	133,344.10	141,861.56
EBITDA (%)
EBIT	74,522.16	71,848.88	52,453.88	87,765.21	155,287.70	103,933.53	110,572.37	117,635.27	125,149.32	133,143.33
EBIT (%)
Depreciation	4,808.26	5,865.77	5,921.03	5,772.90	5,663.22	6,805.57	7,240.28	7,702.76	8,194.78	8,718.23
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	285,260.28	320,756.11	311,934.07	321,937.22	358,572.13	386,465.69	411,151.49	437,414.12	465,354.30	495,079.18
Total Cash (%)
Account Receivables	17,654.37	23,916.28	23,792.81	22,458.25	25,765.87	27,465.37	29,219.74	31,086.17	33,071.83	35,184.32
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	$ 2.77
Beta	0.595
Diluted Shares Outstanding	10,677.19
Cost of Debt
Tax Rate	13.33
After-tax Cost of Debt	32.59%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.619
Total Debt	349,226.77
Total Equity	29,575.83
Total Capital	378,802.60
Debt Weighting	92.19
Equity Weighting	7.81
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	88,790.75	99,281.02	82,368.59	102,428.58	109,001.11	115,963.64	123,370.91	131,251.33	139,635.11	148,554.42
EBITDA	79,330.42	77,714.65	58,374.91	93,538.11	160,950.92	110,739.10	117,812.65	125,338.03	133,344.10	141,861.56
EBIT	74,522.16	71,848.88	52,453.88	87,765.21	155,287.70	103,933.53	110,572.37	117,635.27	125,149.32	133,143.33
Tax Rate	14.70%	-57.11%	-288.61%	29.47%	13.33%	-57.64%	-57.64%	-57.64%	-57.64%	-57.64%
EBIAT	63,566.93	112,881.84	203,839.21	61,904.94	134,593.79	163,845.92	174,311.71	185,446.01	197,291.52	209,893.67
Depreciation	4,808.26	5,865.77	5,921.03	5,772.90	5,663.22	6,805.57	7,240.28	7,702.76	8,194.78	8,718.23
Accounts Receivable	-	-6,261.91	123.47	1,334.56	-3,307.62	-1,699.50	-1,754.37	-1,866.43	-1,985.65	-2,112.49
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	62,932.59	107,160.19	205,619.19	64,602.28	127,537.16	162,084.24	172,491.18	183,509.20	195,230.99	207,701.53
WACC
PV UFCF						124,145.41	101,192.10	82,456.98	67,190.55	54,750.61
SUM PV UFCF										429,735.65

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	30.56
Free cash flow (t + 1)	211,855.56
Terminal Value	741,791.17
Present Value of Terminal Value	195,537.90

Intrinsic Value

Enterprise Value	625,273.55
Net Debt	206,242.92
Equity Value	419,030.63
Shares Outstanding	10,677.19
Equity Value Per Share	39.25