Discounted Cash Flow (DCF) Analysis Unlevered

VEON Ltd. (VEON)

$0.451

-0.01 (-1.96%)
All numbers are in Millions, Currency in USD
Stock DCF: 18.84 | 0.451 | undervalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 9,4749,0868,8637,9807,7887,419.667,068.736,734.416,415.906,112.45
Revenue (%)
EBITDA 2,9154,4594,1653,3803,4953,176.653,026.402,883.272,746.902,616.98
EBITDA (%)
EBIT 9241,7672,0116761,6221,204.781,147.801,093.511,041.79992.52
EBIT (%)
Depreciation 1,9912,6922,1542,7041,8731,971.871,878.601,789.751,705.101,624.46
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 1,3041,8081,3321,7592,3381,495.131,424.421,357.051,292.861,231.72
Total Cash (%)
Account Receivables ---804920812.02773.61737.02702.16668.95
Account Receivables (%)
Inventories 72141169111111104.3999.4694.7590.2786
Inventories (%)
Accounts Payable ---1,9772,0311,886.561,797.331,712.331,631.341,554.18
Accounts Payable (%)
Capital Expenditure -2,037-1,948-1,683-1,778-1,796-1,591.83-1,516.55-1,444.82-1,376.48-1,311.38
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 0.451
Beta 1.516
Diluted Shares Outstanding 1,753
Cost of Debt
Tax Rate 25.77
After-tax Cost of Debt 4.81%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.044
Total Debt 10,646
Total Equity 790.60
Total Capital 11,436.60
Debt Weighting 93.09
Equity Weighting 6.91
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 9,4749,0868,8637,9807,7887,419.667,068.736,734.416,415.906,112.45
EBITDA 2,9154,4594,1653,3803,4953,176.653,026.402,883.272,746.902,616.98
EBIT 9241,7672,0116761,6221,204.781,147.801,093.511,041.79992.52
Tax Rate -1,912.50%334.68%47.42%1,442.31%25.77%-12.47%-12.47%-12.47%-12.47%-12.47%
EBIAT 18,595.50-4,146.751,057.44-9,0741,2041,354.961,290.881,229.821,171.661,116.24
Depreciation 1,9912,6922,1542,7041,8731,971.871,878.601,789.751,705.101,624.46
Accounts Receivable -----116107.9838.4136.5934.8633.21
Inventories --69-2858-06.614.944.704.484.27
Accounts Payable ----54-144.44-89.23-85.01-80.99-77.16
Capital Expenditure -2,037-1,948-1,683-1,778-1,796-1,591.83-1,516.55-1,444.82-1,376.48-1,311.38
UFCF 18,549.50-3,471.751,500.44-8,0901,2191,705.141,607.051,531.041,458.631,389.64
WACC
PV UFCF 1,621.321,452.931,316.171,192.281,080.05
SUM PV UFCF 6,662.75

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.17
Free cash flow (t + 1) 1,417.43
Terminal Value 44,714
Present Value of Terminal Value 34,752.35

Intrinsic Value

Enterprise Value 41,415.10
Net Debt 8,394
Equity Value 33,021.10
Shares Outstanding 1,753
Equity Value Per Share 18.84