Discounted Cash Flow (DCF) Analysis Unlevered

VEON Ltd. (VEON)

$20.13

-0.01 (-0.05%)

All numbers are in Millions, Currency in USD

Stock DCF: -155.89 | 20.13 | overvalue

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	9,086	8,863	7,980	7,788	3,755	3,129.72	2,608.56	2,174.18	1,812.14	1,510.38
Revenue (%)
EBITDA	3,272	4,396	4,373	3,425	1,742	1,444.55	1,204.01	1,003.51	836.41	697.13
EBITDA (%)
EBIT	1,438	2,242	1,669	1,552	1,071	691.59	576.43	480.44	400.44	333.76
EBIT (%)
Depreciation	1,834	2,154	2,704	1,873	671	752.96	627.58	523.07	435.97	363.37
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	1,896	1,332	1,759	2,338	4,010	1,219.03	1,016.03	846.84	705.83	588.29
Total Cash (%)
Account Receivables	689	644	645	920	577	313.67	261.44	217.90	181.62	151.37
Account Receivables (%)
Inventories	141	169	111	111	18	42.28	35.24	29.37	24.48	20.40
Inventories (%)
Accounts Payable	1,432	1,847	1,977	2,031	1,087	728.60	607.28	506.15	421.87	351.62
Accounts Payable (%)
Capital Expenditure	-1,949	-1,683	-1,778	-1,796	-1,010	-705.31	-587.86	-489.97	-408.38	-340.38
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 20.13
Beta	1.587
Diluted Shares Outstanding	70.44
Cost of Debt
Tax Rate	-9.02
After-tax Cost of Debt	18.72%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.746
Total Debt	7,571
Total Equity	1,417.96
Total Capital	8,988.96
Debt Weighting	84.23
Equity Weighting	15.77
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	9,086	8,863	7,980	7,788	3,755	3,129.72	2,608.56	2,174.18	1,812.14	1,510.38
EBITDA	3,272	4,396	4,373	3,425	1,742	1,444.55	1,204.01	1,003.51	836.41	697.13
EBIT	1,438	2,242	1,669	1,552	1,071	691.59	576.43	480.44	400.44	333.76
Tax Rate	334.68%	47.42%	1,315.38%	25.77%	-9.02%	342.85%	342.85%	342.85%	342.85%	342.85%
EBIAT	-3,374.66	1,178.90	-20,284.77	1,152.04	1,167.64	-1,679.49	-1,399.83	-1,166.73	-972.44	-810.51
Depreciation	1,834	2,154	2,704	1,873	671	752.96	627.58	523.07	435.97	363.37
Accounts Receivable	-	45	-1	-275	343	263.33	52.23	43.53	36.28	30.24
Inventories	-	-28	58	-0	93	-24.28	7.04	5.87	4.89	4.08
Accounts Payable	-	415	130	54	-944	-358.40	-121.33	-101.12	-84.28	-70.25
Capital Expenditure	-1,949	-1,683	-1,778	-1,796	-1,010	-705.31	-587.86	-489.97	-408.38	-340.38
UFCF	-3,489.66	2,081.90	-19,171.77	1,008.04	320.64	-1,751.18	-1,422.16	-1,185.34	-987.96	-823.45
WACC
PV UFCF						-1,488.85	-1,027.98	-728.45	-516.20	-365.79
SUM PV UFCF										-4,127.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	17.62
Free cash flow (t + 1)	-839.91
Terminal Value	-5,377.17
Present Value of Terminal Value	-2,388.62

Intrinsic Value

Enterprise Value	-6,515.89
Net Debt	4,465
Equity Value	-10,980.89
Shares Outstanding	70.44
Equity Value Per Share	-155.89