Discounted Cash Flow (DCF) Analysis Unlevered

BRF S.A. (BRFS)

$2.73

+0.09 (+3.41%)

All numbers are in Millions, Currency in USD

Stock DCF: 458.90 | 2.73 | 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	33,469.40	30,188.40	33,446.98	39,469.70	48,343.31	53,356.51	58,889.58	64,996.42	71,736.55	79,175.63
Revenue (%)
EBITDA	2,828.80	-1,229	5,106.38	5,976.54	5,474.28	4,920.94	5,431.24	5,994.46	6,616.08	7,302.17
EBITDA (%)
EBIT	910.80	-2,976.20	2,805.11	3,582.16	2,727.92	1,703.97	1,880.68	2,075.70	2,290.95	2,528.52
EBIT (%)
Depreciation	1,918	1,747.20	2,301.28	2,394.38	2,746.35	3,216.96	3,550.56	3,918.76	4,325.13	4,773.65
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	6,239.20	5,376.60	4,655.97	7,890.78	7,875.68	9,247.24	10,206.18	11,264.56	12,432.70	13,721.97
Total Cash (%)
Account Receivables	5,266.50	3,794.20	3,716.91	5,079.38	5,155.05	6,717.48	7,414.08	8,182.92	9,031.49	9,968.05
Account Receivables (%)
Inventories	6,458.70	5,390.40	5,490.95	8,931.77	12,554.79	10,902.82	12,033.45	13,281.32	14,658.59	16,178.68
Inventories (%)
Accounts Payable	6,445.50	5,552.40	5,784.42	8,996.21	11,702	10,878.69	12,006.81	13,251.91	14,626.14	16,142.87
Accounts Payable (%)
Capital Expenditure	-938.20	-598.50	-481.48	-900.79	-1,735.06	-1,290.86	-1,424.72	-1,572.46	-1,735.53	-1,915.50
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 2.73
Beta	1.340
Diluted Shares Outstanding	849.54
Cost of Debt
Tax Rate	1,305.75
After-tax Cost of Debt	-123.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.450
Total Debt	27,935.28
Total Equity	2,319.24
Total Capital	30,254.51
Debt Weighting	92.33
Equity Weighting	7.67
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	33,469.40	30,188.40	33,446.98	39,469.70	48,343.31	53,356.51	58,889.58	64,996.42	71,736.55	79,175.63
EBITDA	2,828.80	-1,229	5,106.38	5,976.54	5,474.28	4,920.94	5,431.24	5,994.46	6,616.08	7,302.17
EBIT	910.80	-2,976.20	2,805.11	3,582.16	2,727.92	1,703.97	1,880.68	2,075.70	2,290.95	2,528.52
Tax Rate	16.34%	-81.72%	78.93%	-12.30%	1,305.75%	261.40%	261.40%	261.40%	261.40%	261.40%
EBIAT	761.94	-5,408.30	591.10	4,022.59	-32,891.84	-2,750.23	-3,035.42	-3,350.20	-3,697.61	-4,081.06
Depreciation	1,918	1,747.20	2,301.28	2,394.38	2,746.35	3,216.96	3,550.56	3,918.76	4,325.13	4,773.65
Accounts Receivable	-	1,472.30	77.29	-1,362.47	-75.67	-1,562.43	-696.60	-768.84	-848.57	-936.57
Inventories	-	1,068.30	-100.55	-3,440.81	-3,623.02	1,651.97	-1,130.62	-1,247.87	-1,377.27	-1,520.10
Accounts Payable	-	-893.10	232.02	3,211.79	2,705.79	-823.31	1,128.12	1,245.11	1,374.22	1,516.73
Capital Expenditure	-938.20	-598.50	-481.49	-900.79	-1,735.06	-1,290.86	-1,424.72	-1,572.46	-1,735.53	-1,915.50
UFCF	1,741.74	-2,612.10	2,619.65	3,924.68	-32,873.44	-1,557.89	-1,608.68	-1,775.50	-1,959.62	-2,162.84
WACC
PV UFCF						11,731.07	-91,216.76	758,101.98	-6,300,581	52,364,090.71
SUM PV UFCF										46,742,126

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	-113.28
Free cash flow (t + 1)	-2,206.09
Terminal Value	1,913.68
Present Value of Terminal Value	-46,331,863.74

Intrinsic Value

Enterprise Value	410,262.26
Net Debt	20,406.46
Equity Value	389,855.80
Shares Outstanding	849.54
Equity Value Per Share	458.90