Discounted Cash Flow (DCF) Analysis Unlevered

Companhia Brasileira de Distribuiçã... (CBD)

$3.43

-0.08 (-2.28%)

All numbers are in Millions, Currency in USD

Stock DCF: 394.69 | 3.43 | 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	49,388	56,635	51,253	51,291	17,321	14,680.19	12,442.01	10,545.06	8,937.33	7,574.72
Revenue (%)
EBITDA	2,921	4,007	6,579	3,677	2,585	1,406.91	1,192.41	1,010.61	856.53	725.94
EBITDA (%)
EBIT	2,032	2,448	4,015	1,560	683	682.78	578.68	490.45	415.68	352.30
EBIT (%)
Depreciation	889	1,559	2,564	2,117	1,902	724.14	613.73	520.16	440.86	373.64
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	4,369	7,954	8,711	8,274	3,751	2,280.54	1,932.84	1,638.15	1,388.40	1,176.72
Total Cash (%)
Account Receivables	1,365	2,800	2,250	2,884	1,810	827.09	700.99	594.12	503.53	426.76
Account Receivables (%)
Inventories	5,909	8,631	6,536	5,257	2,046	1,820.88	1,543.26	1,307.97	1,108.55	939.54
Inventories (%)
Accounts Payable	9,246	14,887	11,424	10,078	3,123	3,082.11	2,612.21	2,213.94	1,876.40	1,590.32
Accounts Payable (%)
Capital Expenditure	-2,366	-2,782	-2,490	-1,267	-1,626	-775.66	-657.40	-557.17	-472.23	-400.23
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 3.43
Beta	0.870
Diluted Shares Outstanding	269
Cost of Debt
Tax Rate	86.92
After-tax Cost of Debt	1.73%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.878
Total Debt	9,900
Total Equity	922.67
Total Capital	10,822.67
Debt Weighting	91.47
Equity Weighting	8.53
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	49,388	56,635	51,253	51,291	17,321	14,680.19	12,442.01	10,545.06	8,937.33	7,574.72
EBITDA	2,921	4,007	6,579	3,677	2,585	1,406.91	1,192.41	1,010.61	856.53	725.94
EBIT	2,032	2,448	4,015	1,560	683	682.78	578.68	490.45	415.68	352.30
Tax Rate	29.95%	-3.95%	-14.62%	-117.34%	86.92%	-3.81%	-3.81%	-3.81%	-3.81%	-3.81%
EBIAT	1,423.47	2,544.63	4,602.15	3,390.57	89.34	708.79	600.73	509.14	431.51	365.72
Depreciation	889	1,559	2,564	2,117	1,902	724.14	613.73	520.16	440.86	373.64
Accounts Receivable	-	-1,435	550	-634	1,074	982.91	126.10	106.88	90.58	76.77
Inventories	-	-2,722	2,095	1,279	3,211	225.12	277.62	235.29	199.42	169.01
Accounts Payable	-	5,641	-3,463	-1,346	-6,955	-40.89	-469.91	-398.26	-337.54	-286.08
Capital Expenditure	-2,366	-2,782	-2,490	-1,267	-1,626	-775.66	-657.40	-557.17	-472.23	-400.23
UFCF	-53.53	2,805.63	3,858.15	3,539.57	-2,304.66	1,824.41	490.86	416.03	352.60	298.84
WACC
PV UFCF						1,784.26	469.50	389.16	322.57	267.37
SUM PV UFCF										3,232.87

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	2.25
Free cash flow (t + 1)	304.82
Terminal Value	121,926.24
Present Value of Terminal Value	109,088.90

Intrinsic Value

Enterprise Value	112,321.77
Net Debt	6,149
Equity Value	106,172.77
Shares Outstanding	269
Equity Value Per Share	394.69