Discounted Cash Flow (DCF) Analysis Unlevered

Grupo de Moda SOMA S.A. (SOMA3.SA)

$8.16

-0.46 (-5.34%)

All numbers are in Millions, Currency in USD

Stock DCF: Infinity | 8.16 | 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	1,082	1,304.11	1,243.77	2,791.68	4,870.52	7,486.24	11,506.72	17,686.42	27,184.92	41,784.59
Revenue (%)
EBITDA	104.30	251.86	-51.84	367.09	705.03	784.69	1,206.11	1,853.86	2,849.47	4,379.79
EBITDA (%)
EBIT	84.32	186.72	-146.53	234.85	442.99	416.81	640.66	984.73	1,513.58	2,326.44
EBIT (%)
Depreciation	19.98	65.13	94.68	132.24	262.04	367.88	565.45	869.13	1,335.90	2,053.35
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	23.79	27.83	706.77	224.06	337.56	1,139.62	1,751.65	2,692.37	4,138.31	6,360.79
Total Cash (%)
Account Receivables	-	-	-	-	-	-	-	-	-	-
Account Receivables (%)
Inventories	229.14	234.64	234.69	930.98	1,207.61	1,739.53	2,673.75	4,109.69	6,316.81	9,709.25
Inventories (%)
Accounts Payable	153.12	170.54	188.72	586.25	794.40	1,193.49	1,834.45	2,819.64	4,333.93	6,661.46
Accounts Payable (%)
Capital Expenditure	-34.97	-32.68	-50.10	-166.91	-209.60	-300.18	-461.39	-709.18	-1,090.04	-1,675.45
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 8.16
Beta	0.396
Diluted Shares Outstanding	-
Cost of Debt
Tax Rate	-18.24
After-tax Cost of Debt	13.25%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.352
Total Debt	1,204.28
Total Equity	-
Total Capital	1,204.28
Debt Weighting	100.00
Equity Weighting	0.00
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	1,082	1,304.11	1,243.77	2,791.68	4,870.52	7,486.24	11,506.72	17,686.42	27,184.92	41,784.59
EBITDA	104.30	251.86	-51.84	367.09	705.03	784.69	1,206.11	1,853.86	2,849.47	4,379.79
EBIT	84.32	186.72	-146.53	234.85	442.99	416.81	640.66	984.73	1,513.58	2,326.44
Tax Rate	-12.35%	10.41%	62.92%	-66.59%	-18.24%	-4.77%	-4.77%	-4.77%	-4.77%	-4.77%
EBIAT	94.74	167.29	-54.33	391.23	523.80	436.69	671.22	1,031.70	1,585.77	2,437.41
Depreciation	19.98	65.13	94.68	132.24	262.04	367.88	565.45	869.13	1,335.90	2,053.35
Accounts Receivable	-	-	-	-	-	-	-	-	-	-
Inventories	-	-5.50	-0.05	-696.28	-276.63	-531.92	-934.22	-1,435.94	-2,207.11	-3,392.45
Accounts Payable	-	17.42	18.18	397.53	208.15	399.09	640.96	985.19	1,514.29	2,327.54
Capital Expenditure	-34.97	-32.68	-50.10	-166.91	-209.60	-300.18	-461.39	-709.18	-1,090.04	-1,675.45
UFCF	79.74	211.67	8.38	57.80	507.75	371.56	482.03	740.90	1,138.80	1,750.39
WACC
PV UFCF						328.09	375.83	510.09	692.30	939.60
SUM PV UFCF										2,845.91

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	13.25
Free cash flow (t + 1)	1,785.40
Terminal Value	15,870.22
Present Value of Terminal Value	8,519.07

Intrinsic Value

Enterprise Value	11,364.98
Net Debt	866.72
Equity Value	10,498.26
Shares Outstanding	-
Equity Value Per Share	Infinity