Discounted Cash Flow (DCF) Analysis Unlevered

Banco Santander (Brasil) S.A. (BSBR)

$5.01

+0.06 (+1.21%)

All numbers are in Millions, Currency in USD

Stock DCF: 35.79 | 5.01 | 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	38,521.86	46,958.26	32,421.69	48,722.25	43,282.51	46,534.74	50,031.34	53,790.67	57,832.47	62,177.98
Revenue (%)
EBITDA	45,989.34	52,960.44	30,543.11	53,821.82	89,829.79	59,972.32	64,478.61	69,323.51	74,532.44	80,132.78
EBITDA (%)
EBIT	44,249.38	50,568.58	27,963.98	51,387.90	87,244.29	57,316.64	61,623.39	66,253.74	71,232.02	76,584.36
EBIT (%)
Depreciation	1,739.96	2,391.86	2,579.13	2,433.92	2,585.50	2,655.68	2,855.23	3,069.77	3,300.43	3,548.42
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	117,153.02	116,247.60	129,889.11	117,898.99	150,475.41	143,507.60	154,290.70	165,884.03	178,348.48	191,749.51
Total Cash (%)
Account Receivables	5,446.79	6,856.91	7,062.01	8,157.53	13,142.60	9,086.46	9,769.22	10,503.27	11,292.48	12,141
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	-	-	-	-	-	-	-	-	-	-
Accounts Payable (%)
Capital Expenditure	-3,010.52	-3,444.51	-2,005.71	-2,365.19	-2,863.66	-3,053.36	-3,282.79	-3,529.45	-3,794.66	-4,079.78
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 5.01
Beta	0.693
Diluted Shares Outstanding	3,787.53
Cost of Debt
Tax Rate	27.01
After-tax Cost of Debt	39.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.759
Total Debt	126,658.49
Total Equity	18,975.54
Total Capital	145,634.03
Debt Weighting	86.97
Equity Weighting	13.03
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	38,521.86	46,958.26	32,421.69	48,722.25	43,282.51	46,534.74	50,031.34	53,790.67	57,832.47	62,177.98
EBITDA	45,989.34	52,960.44	30,543.11	53,821.82	89,829.79	59,972.32	64,478.61	69,323.51	74,532.44	80,132.78
EBIT	44,249.38	50,568.58	27,963.98	51,387.90	87,244.29	57,316.64	61,623.39	66,253.74	71,232.02	76,584.36
Tax Rate	20.91%	26.34%	-38.85%	37.26%	27.01%	14.53%	14.53%	14.53%	14.53%	14.53%
EBIAT	34,995.28	37,250.02	38,828.27	32,240.14	63,677.37	48,985.79	52,666.56	56,623.91	60,878.60	65,452.99
Depreciation	1,739.96	2,391.86	2,579.13	2,433.92	2,585.50	2,655.68	2,855.23	3,069.77	3,300.43	3,548.42
Accounts Receivable	-	-1,410.11	-205.10	-1,095.52	-4,985.07	4,056.14	-682.75	-734.05	-789.21	-848.51
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	-	-	-	-	-	-	-	-	-
Capital Expenditure	-3,010.52	-3,444.51	-2,005.71	-2,365.19	-2,863.66	-3,053.36	-3,282.79	-3,529.45	-3,794.66	-4,079.78
UFCF	33,724.71	34,787.26	39,196.59	31,213.34	58,414.15	52,644.25	51,556.25	55,430.16	59,595.16	64,073.12
WACC
PV UFCF						39,047.81	28,364.34	22,619.51	18,038.22	14,384.81
SUM PV UFCF										122,454.69

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	34.82
Free cash flow (t + 1)	65,354.58
Terminal Value	199,130.34
Present Value of Terminal Value	44,706

Intrinsic Value

Enterprise Value	167,160.69
Net Debt	31,608.76
Equity Value	135,551.94
Shares Outstanding	3,787.53
Equity Value Per Share	35.79