Discounted Cash Flow (DCF) Analysis Unlevered

Econocom Group SE (ECONB.BR)

2.815 €

-0.01 (-0.53%)

All numbers are in Millions, Currency in USD

Stock DCF: 7.67 | 2.815 | 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	2,845.90	2,926.60	2,558.70	2,504.70	2,718.30	2,695.75	2,673.39	2,651.22	2,629.23	2,607.42
Revenue (%)
EBITDA	133.90	160.30	145.30	161.30	146.10	149.21	147.98	146.75	145.53	144.32
EBITDA (%)
EBIT	91.30	102.60	101.40	121.60	108.10	105.18	104.31	103.44	102.58	101.73
EBIT (%)
Depreciation	42.60	57.70	43.90	39.70	38	44.03	43.67	43.31	42.95	42.59
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	610	593.80	649.30	405.80	404.80	529.41	525.02	520.67	516.35	512.06
Total Cash (%)
Account Receivables	1.18	1.03	0.83	0.75	0.95	0.94	0.93	0.92	0.92	0.91
Account Receivables (%)
Inventories	52.10	60.10	76.70	122.60	103.60	84.04	83.35	82.65	81.97	81.29
Inventories (%)
Accounts Payable	854	756.90	775.20	707.30	741.20	763.83	757.50	751.21	744.98	738.81
Accounts Payable (%)
Capital Expenditure	-51.10	-23	-17.10	-18.80	-23.90	-26.31	-26.09	-25.87	-25.66	-25.45
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 2.815
Beta	1.371
Diluted Shares Outstanding	201.26
Cost of Debt
Tax Rate	33.05
After-tax Cost of Debt	2.35%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.162
Total Debt	614.60
Total Equity	566.56
Total Capital	1,181.16
Debt Weighting	52.03
Equity Weighting	47.97
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	2,845.90	2,926.60	2,558.70	2,504.70	2,718.30	2,695.75	2,673.39	2,651.22	2,629.23	2,607.42
EBITDA	133.90	160.30	145.30	161.30	146.10	149.21	147.98	146.75	145.53	144.32
EBIT	91.30	102.60	101.40	121.60	108.10	105.18	104.31	103.44	102.58	101.73
Tax Rate	40.12%	44.26%	31.08%	40.13%	33.05%	37.73%	37.73%	37.73%	37.73%	37.73%
EBIAT	54.67	57.18	69.89	72.80	72.37	65.50	64.95	64.42	63.88	63.35
Depreciation	42.60	57.70	43.90	39.70	38	44.03	43.67	43.31	42.95	42.59
Accounts Receivable	-	0.15	0.20	0.08	-0.19	0.01	0.01	0.01	0.01	0.01
Inventories	-	-8	-16.60	-45.90	19	19.56	0.70	0.69	0.69	0.68
Accounts Payable	-	-97.10	18.30	-67.90	33.90	22.63	-6.34	-6.28	-6.23	-6.18
Capital Expenditure	-51.10	-23	-17.10	-18.80	-23.90	-26.31	-26.09	-25.87	-25.66	-25.45
UFCF	46.17	-13.06	98.59	-20.02	139.17	125.42	76.90	76.26	75.63	75
WACC
PV UFCF						118.21	68.31	63.85	59.68	55.78
SUM PV UFCF										365.84

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.10
Free cash flow (t + 1)	76.50
Terminal Value	1,865.94
Present Value of Terminal Value	1,387.78

Intrinsic Value

Enterprise Value	1,753.62
Net Debt	209.80
Equity Value	1,543.82
Shares Outstanding	201.26
Equity Value Per Share	7.67