Discounted Cash Flow (DCF) Analysis Unlevered

The Kraft Heinz Company (KHC)

$38.58

+0.40 (+1.05%)

All numbers are in Millions, Currency in USD

Stock DCF: -0.13 | 38.58 | 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	26,268	24,977	26,185	26,042	26,485	26,556.29	26,627.78	26,699.45	26,771.32	26,843.38
Revenue (%)
EBITDA	-8,992	5,018	3,388	4,653	4,815	1,850.70	1,855.68	1,860.67	1,865.68	1,870.71
EBITDA (%)
EBIT	-9,975	4,024	2,419	3,743	3,882	871.33	873.67	876.02	878.38	880.75
EBIT (%)
Depreciation	983	994	969	910	933	979.37	982.01	984.65	987.30	989.96
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	1,130	2,279	3,417	3,445	1,040	2,317.36	2,323.60	2,329.85	2,336.12	2,342.41
Total Cash (%)
Account Receivables	2,281	2,146	2,063	1,957	2,120	2,160.27	2,166.08	2,171.91	2,177.76	2,183.62
Account Receivables (%)
Inventories	2,667	2,721	2,554	2,729	3,651	2,924.65	2,932.52	2,940.42	2,948.33	2,956.27
Inventories (%)
Accounts Payable	4,153	4,003	4,304	4,753	4,848	4,505.53	4,517.65	4,529.81	4,542.01	4,554.23
Accounts Payable (%)
Capital Expenditure	-826	-768	-596	-905	-916	-819.48	-821.69	-823.90	-826.12	-828.34
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 38.58
Beta	0.703
Diluted Shares Outstanding	1,236
Cost of Debt
Tax Rate	20.33
After-tax Cost of Debt	3.82%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.814
Total Debt	19,239
Total Equity	47,684.88
Total Capital	66,923.88
Debt Weighting	28.75
Equity Weighting	71.25
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	26,268	24,977	26,185	26,042	26,485	26,556.29	26,627.78	26,699.45	26,771.32	26,843.38
EBITDA	-8,992	5,018	3,388	4,653	4,815	1,850.70	1,855.68	1,860.67	1,865.68	1,870.71
EBIT	-9,975	4,024	2,419	3,743	3,882	871.33	873.67	876.02	878.38	880.75
Tax Rate	9.97%	27.28%	65.44%	40.75%	20.33%	32.75%	32.75%	32.75%	32.75%	32.75%
EBIAT	-8,980.23	2,926.13	836.08	2,217.75	3,092.77	585.93	587.50	589.09	590.67	592.26
Depreciation	983	994	969	910	933	979.37	982.01	984.65	987.30	989.96
Accounts Receivable	-	135	83	106	-163	-40.27	-5.81	-5.83	-5.85	-5.86
Inventories	-	-54	167	-175	-922	726.35	-7.87	-7.89	-7.91	-7.94
Accounts Payable	-	-150	301	449	95	-342.47	12.13	12.16	12.19	12.23
Capital Expenditure	-826	-768	-596	-905	-916	-819.48	-821.69	-823.90	-826.12	-828.34
UFCF	-8,823.23	3,083.13	1,760.08	2,602.75	2,119.77	1,089.43	746.26	748.27	750.29	752.31
WACC
PV UFCF						1,028.25	664.80	629.15	595.42	563.50
SUM PV UFCF										3,481.12

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.95
Free cash flow (t + 1)	767.35
Terminal Value	19,426.68
Present Value of Terminal Value	14,551.03

Intrinsic Value

Enterprise Value	18,032.15
Net Debt	18,199
Equity Value	-166.85
Shares Outstanding	1,236
Equity Value Per Share	-0.13