Discounted Cash Flow (DCF) Analysis Unlevered

Dada Nexus Limited (DADA)

$3.27

+0.19 (+6.17%)

All numbers are in Millions, Currency in USD

Stock DCF: -179.84 | 3.27 | overvalue

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	307.52	495.95	918.40	1,098.60	1,498.82	2,257.60	3,400.53	5,122.08	7,715.17	11,621.04
Revenue (%)
EBITDA	-273.78	-231.96	-271.76	-394.84	-320.30	-1,005.54	-1,514.60	-2,281.38	-3,436.34	-5,176.02
EBITDA (%)
EBIT	-486.02	-447.63	-473.03	-587.41	-817.26	-1,841.31	-2,773.49	-4,177.59	-6,292.53	-9,478.17
EBIT (%)
Depreciation	212.24	215.66	201.27	192.57	496.96	835.77	1,258.89	1,896.21	2,856.19	4,302.15
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	554.46	337.92	997	273.08	629.84	1,913.88	2,882.80	4,342.23	6,540.52	9,851.72
Total Cash (%)
Account Receivables	42.06	66.27	167.99	190.88	219.92	349.38	526.26	792.68	1,193.97	1,798.43
Account Receivables (%)
Inventories	1.26	0.62	0.87	1.02	1.41	3.69	5.55	8.37	12.60	18.98
Inventories (%)
Accounts Payable	1.39	1.59	2.22	1.57	1.57	5.69	8.56	12.90	19.43	29.27
Accounts Payable (%)
Capital Expenditure	-32.86	-31.76	-23.89	-16.88	-3.74	-96.98	-146.07	-220.02	-331.40	-499.18
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 3.27
Beta	1.720
Diluted Shares Outstanding	253.82
Cost of Debt
Tax Rate	0.24
After-tax Cost of Debt	7.74%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.274
Total Debt	22.57
Total Equity	829.98
Total Capital	852.55
Debt Weighting	2.65
Equity Weighting	97.35
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	307.52	495.95	918.40	1,098.60	1,498.82	2,257.60	3,400.53	5,122.08	7,715.17	11,621.04
EBITDA	-273.78	-231.96	-271.76	-394.84	-320.30	-1,005.54	-1,514.60	-2,281.38	-3,436.34	-5,176.02
EBIT	-486.02	-447.63	-473.03	-587.41	-817.26	-1,841.31	-2,773.49	-4,177.59	-6,292.53	-9,478.17
Tax Rate	1.44%	0.54%	0.30%	0.47%	0.24%	0.60%	0.60%	0.60%	0.60%	0.60%
EBIAT	-479.01	-445.22	-471.61	-584.67	-815.30	-1,830.31	-2,756.92	-4,152.63	-6,254.93	-9,421.54
Depreciation	212.24	215.66	201.27	192.57	496.96	835.77	1,258.89	1,896.21	2,856.19	4,302.15
Accounts Receivable	-	-24.21	-101.72	-22.89	-29.04	-129.46	-176.88	-266.42	-401.30	-604.46
Inventories	-	0.64	-0.24	-0.15	-0.40	-2.27	-1.87	-2.81	-4.23	-6.38
Accounts Payable	-	0.20	0.63	-0.65	-0	4.12	2.88	4.34	6.53	9.84
Capital Expenditure	-32.86	-31.76	-23.89	-16.88	-3.74	-96.98	-146.07	-220.02	-331.40	-499.18
UFCF	-299.63	-284.68	-395.56	-432.67	-351.52	-1,219.13	-1,819.96	-2,741.33	-4,129.15	-6,219.57
WACC
PV UFCF						-1,087.05	-1,446.98	-1,943.41	-2,610.14	-3,505.61
SUM PV UFCF										-10,593.19

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	12.15
Free cash flow (t + 1)	-6,343.96
Terminal Value	-62,502.07
Present Value of Terminal Value	-35,228.81

Intrinsic Value

Enterprise Value	-45,822.01
Net Debt	-174.87
Equity Value	-45,647.14
Shares Outstanding	253.82
Equity Value Per Share	-179.84