Discounted Cash Flow (DCF) Analysis Unlevered

Proximus PLC (PROX.BR)

8.834 €

-0.07 (-0.74%)

All numbers are in Millions, Currency in USD

Stock DCF: 50.22 | 8.834 | 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	5,764	5,638	5,443	5,537	5,853	5,879.18	5,905.48	5,931.90	5,958.44	5,985.09
Revenue (%)
EBITDA	1,766	1,659	1,949	1,814	1,808	1,875.73	1,884.12	1,892.55	1,901.01	1,909.52
EBITDA (%)
EBIT	750	539	833	631	629	705.72	708.88	712.05	715.24	718.43
EBIT (%)
Depreciation	1,016	1,120	1,116	1,183	1,179	1,170.01	1,175.24	1,180.50	1,185.78	1,191.08
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	344	326	313	249	298	318.52	319.95	321.38	322.82	324.26
Total Cash (%)
Account Receivables	1,125	1,357	1,102	1,306	1,199	1,268.78	1,274.46	1,280.16	1,285.89	1,291.64
Account Receivables (%)
Inventories	129	133	106	131	187	142.34	142.98	143.62	144.26	144.90
Inventories (%)
Accounts Payable	1,361	1,284	1,213	1,515	1,620	1,454.64	1,461.15	1,467.68	1,474.25	1,480.85
Accounts Payable (%)
Capital Expenditure	-1,099	-1,091	-1,089	-1,137	-1,441	-1,217.92	-1,223.37	-1,228.84	-1,234.34	-1,239.86
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 8.834
Beta	0.268
Diluted Shares Outstanding	322.55
Cost of Debt
Tax Rate	22.15
After-tax Cost of Debt	3.31%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.520
Total Debt	3,536
Total Equity	2,849.43
Total Capital	6,385.43
Debt Weighting	55.38
Equity Weighting	44.62
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	5,764	5,638	5,443	5,537	5,853	5,879.18	5,905.48	5,931.90	5,958.44	5,985.09
EBITDA	1,766	1,659	1,949	1,814	1,808	1,875.73	1,884.12	1,892.55	1,901.01	1,909.52
EBIT	750	539	833	631	629	705.72	708.88	712.05	715.24	718.43
Tax Rate	29.54%	26.57%	25.40%	23.75%	22.15%	25.48%	25.48%	25.48%	25.48%	25.48%
EBIAT	528.43	395.76	621.44	481.12	489.71	525.89	528.24	530.60	532.98	535.36
Depreciation	1,016	1,120	1,116	1,183	1,179	1,170.01	1,175.24	1,180.50	1,185.78	1,191.08
Accounts Receivable	-	-232	255	-204	107	-69.78	-5.68	-5.70	-5.73	-5.75
Inventories	-	-4	27	-25	-56	44.66	-0.64	-0.64	-0.64	-0.65
Accounts Payable	-	-77	-71	302	105	-165.36	6.51	6.54	6.57	6.60
Capital Expenditure	-1,099	-1,091	-1,089	-1,137	-1,441	-1,217.92	-1,223.37	-1,228.84	-1,234.34	-1,239.86
UFCF	445.43	111.76	859.44	600.12	383.71	287.49	480.30	482.45	484.61	486.78
WACC
PV UFCF						275.64	441.52	425.21	409.50	394.38
SUM PV UFCF										1,946.24

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.30
Free cash flow (t + 1)	496.51
Terminal Value	21,587.57
Present Value of Terminal Value	17,489.69

Intrinsic Value

Enterprise Value	19,435.93
Net Debt	3,238
Equity Value	16,197.93
Shares Outstanding	322.55
Equity Value Per Share	50.22