Discounted Cash Flow (DCF) Analysis Unlevered

Oi S.A. (OIBR3.SA)

$0.21

+0.01 (+5.00%)
All numbers are in Millions, Currency in USD
Stock DCF: -3.35 | 0.21 | overvalue

Operating Data

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 25,99623,789.6522,060.0120,136.189,284.307,465.256,002.604,826.523,880.873,120.50
Revenue (%)
EBITDA 7,920.623,462.3735,203.372,318.73-2,270.302,861.652,300.971,850.151,487.651,196.18
EBITDA (%)
EBIT 1,610-2,418.9329,250.46-4,555.22-6,612.01519.30417.55335.74269.96217.07
EBIT (%)
Depreciation 6,310.625,881.305,952.916,873.954,341.712,342.351,883.421,514.411,217.69979.11
Depreciation (%)

Balance Sheet Data

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Total Cash 7,6806,884.134,587.302,265.794,301.662,043.391,643.031,321.121,062.27854.14
Total Cash (%)
Account Receivables 10,8919,572.547,941.057,967.076,155.813,344.432,689.162,162.281,738.631,397.98
Account Receivables (%)
Inventories 355253.62317.50326.93378.46142.90114.9092.3974.2959.73
Inventories (%)
Accounts Payable 8,0355,170.975,225.865,593.943,275.922,081.301,673.511,345.631,081.98869.99
Accounts Payable (%)
Capital Expenditure -3,263.57-4,344.24-5,246.24-7,425.51-3,455.14-1,921.38-1,544.93-1,242.23-998.84-803.14
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 0.21
Beta 1.450
Diluted Shares Outstanding 5,796.45
Cost of Debt
Tax Rate 25.25
After-tax Cost of Debt 19.04%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.537
Total Debt 29,325.41
Total Equity 1,217.25
Total Capital 30,542.67
Debt Weighting 96.01
Equity Weighting 3.99
Wacc

Build Up Free Cash

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 25,99623,789.6522,060.0120,136.189,284.307,465.256,002.604,826.523,880.873,120.50
EBITDA 7,920.623,462.3735,203.372,318.73-2,270.302,861.652,300.971,850.151,487.651,196.18
EBIT 1,610-2,418.9329,250.46-4,555.22-6,612.01519.30417.55335.74269.96217.07
Tax Rate -114.59%14.67%-1.19%0.95%25.25%-14.98%-14.98%-14.98%-14.98%-14.98%
EBIAT 3,454.83-2,064.2029,599.48-4,511.78-4,942.56597.10480.11386.05310.41249.59
Depreciation 6,310.625,881.305,952.916,873.954,341.712,342.351,883.421,514.411,217.69979.11
Accounts Receivable -1,318.461,631.49-26.021,811.262,811.38655.27526.88423.65340.65
Inventories -101.38-63.88-9.43-51.53235.562822.5118.1014.55
Accounts Payable --2,864.0354.89368.08-2,318.02-1,194.62-407.78-327.89-263.65-211.99
Capital Expenditure -3,263.57-4,344.24-5,246.24-7,425.51-3,455.14-1,921.38-1,544.93-1,242.23-998.84-803.14
UFCF 6,501.88-1,971.3231,928.64-4,730.71-4,614.282,870.401,094.09879.73707.36568.77
WACC
PV UFCF 2,418.19776.52526.01356.32241.37
SUM PV UFCF 4,318.41

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 18.70
Free cash flow (t + 1) 580.15
Terminal Value 3,473.93
Present Value of Terminal Value 1,474.24

Intrinsic Value

Enterprise Value 5,792.65
Net Debt 25,217.47
Equity Value -19,424.82
Shares Outstanding 5,796.45
Equity Value Per Share -3.35