Discounted Cash Flow (DCF) Analysis Unlevered

Liberty Latin America Ltd. (LILA)

$8.43

+0.10 (+1.20%)

All numbers are in Millions, Currency in USD

Stock DCF: 13.90 | 8.43 | 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	3,705.70	3,867	3,764.60	4,799	4,815.10	5,170.42	5,551.96	5,961.66	6,401.59	6,873.98
Revenue (%)
EBITDA	979.40	1,191.90	731.50	1,241.50	1,378.30	1,356.48	1,456.58	1,564.07	1,679.49	1,803.42
EBITDA (%)
EBIT	149.60	320.90	-183.10	276.80	467.60	237.33	254.84	273.65	293.84	315.53
EBIT (%)
Depreciation	829.80	871	914.60	964.70	910.70	1,119.16	1,201.74	1,290.42	1,385.65	1,487.90
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	631	1,183.80	894.20	956.70	781	1,112.14	1,194.21	1,282.34	1,376.97	1,478.58
Total Cash (%)
Account Receivables	607.30	585.20	560.70	652.80	695.30	769.96	826.78	887.79	953.30	1,023.65
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	297.40	346.60	351.70	398	525.10	470.81	505.56	542.86	582.92	625.94
Accounts Payable (%)
Capital Expenditure	-776.40	-589.10	-565.80	-736.30	-660.10	-830.03	-891.28	-957.05	-1,027.67	-1,103.50
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 8.43
Beta	1.325
Diluted Shares Outstanding	232.61
Cost of Debt
Tax Rate	-52.17
After-tax Cost of Debt	7.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.047
Total Debt	7,957.40
Total Equity	1,960.90
Total Capital	9,918.30
Debt Weighting	80.23
Equity Weighting	19.77
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	3,705.70	3,867	3,764.60	4,799	4,815.10	5,170.42	5,551.96	5,961.66	6,401.59	6,873.98
EBITDA	979.40	1,191.90	731.50	1,241.50	1,378.30	1,356.48	1,456.58	1,564.07	1,679.49	1,803.42
EBIT	149.60	320.90	-183.10	276.80	467.60	237.33	254.84	273.65	293.84	315.53
Tax Rate	40.96%	71.45%	18.01%	-46.41%	-52.17%	6.37%	6.37%	6.37%	6.37%	6.37%
EBIAT	88.32	91.60	-150.11	405.26	711.53	222.21	238.61	256.21	275.12	295.42
Depreciation	829.80	871	914.60	964.70	910.70	1,119.16	1,201.74	1,290.42	1,385.65	1,487.90
Accounts Receivable	-	22.10	24.50	-92.10	-42.50	-74.66	-56.82	-61.01	-65.51	-70.35
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	49.20	5.10	46.30	127.10	-54.29	34.74	37.31	40.06	43.02
Capital Expenditure	-776.40	-589.10	-565.80	-736.30	-660.10	-830.03	-891.28	-957.05	-1,027.67	-1,103.50
UFCF	141.72	444.80	228.29	587.86	1,046.73	382.39	527	565.88	607.64	652.48
WACC
PV UFCF						355.38	455.18	454.25	453.31	452.38
SUM PV UFCF										2,170.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.60
Free cash flow (t + 1)	665.53
Terminal Value	11,884.51
Present Value of Terminal Value	8,239.86

Intrinsic Value

Enterprise Value	10,410.37
Net Debt	7,176.40
Equity Value	3,233.97
Shares Outstanding	232.61
Equity Value Per Share	13.90