Discounted Cash Flow (DCF) Analysis Unlevered

Vetoquinol SA (VETO.PA)

127.4 €

+1.40 (+1.11%)

All numbers are in Millions, Currency in USD

Stock DCF: 54.88 | 127.4 | overvalue

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	352.17	367.94	395.99	427.47	521.27	576	636.47	703.29	777.12	858.71
Revenue (%)
EBITDA	55.60	61.10	65.52	82.83	118.86	104.97	115.99	128.16	141.62	156.49
EBITDA (%)
EBIT	43.56	48.62	41.43	36.68	87.25	70.70	78.12	86.32	95.38	105.39
EBIT (%)
Depreciation	12.03	12.48	24.08	46.15	31.61	34.27	37.87	41.84	46.24	51.09
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	113.02	117.63	84.51	129.44	69	148.52	164.11	181.34	200.38	221.41
Total Cash (%)
Account Receivables	-	-	-	-	-	-	-	-	-	-
Account Receivables (%)
Inventories	69.38	77.16	77.35	85.53	111.59	117.07	129.36	142.94	157.94	174.52
Inventories (%)
Accounts Payable	24.84	25.65	30.44	41.47	46.94	46.56	51.45	56.85	62.82	69.41
Accounts Payable (%)
Capital Expenditure	-13.70	-14.22	-14.33	-145.46	-32.40	-59.47	-65.71	-72.61	-80.23	-88.65
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 127.4
Beta	0.672
Diluted Shares Outstanding	11.83
Cost of Debt
Tax Rate	27.34
After-tax Cost of Debt	2.91%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.063
Total Debt	15.38
Total Equity	1,507.56
Total Capital	1,522.94
Debt Weighting	1.01
Equity Weighting	98.99
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	352.17	367.94	395.99	427.47	521.27	576	636.47	703.29	777.12	858.71
EBITDA	55.60	61.10	65.52	82.83	118.86	104.97	115.99	128.16	141.62	156.49
EBIT	43.56	48.62	41.43	36.68	87.25	70.70	78.12	86.32	95.38	105.39
Tax Rate	19.59%	25.36%	29.72%	45.98%	27.34%	29.60%	29.60%	29.60%	29.60%	29.60%
EBIAT	35.03	36.29	29.12	19.82	63.40	49.77	55	60.77	67.15	74.20
Depreciation	12.03	12.48	24.08	46.15	31.61	34.27	37.87	41.84	46.24	51.09
Accounts Receivable	-	-	-	-	-	-	-	-	-	-
Inventories	-	-7.78	-0.20	-8.17	-26.07	-5.47	-12.29	-13.58	-15.01	-16.58
Accounts Payable	-	0.81	4.79	11.02	5.47	-0.37	4.89	5.40	5.97	6.60
Capital Expenditure	-13.71	-14.22	-14.33	-145.46	-32.40	-59.47	-65.71	-72.61	-80.23	-88.65
UFCF	33.36	27.59	43.46	-76.65	42	18.73	19.75	21.83	24.12	26.65
WACC
PV UFCF						17.66	17.57	18.31	19.08	19.89
SUM PV UFCF										92.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.03
Free cash flow (t + 1)	27.18
Terminal Value	674.52
Present Value of Terminal Value	503.32

Intrinsic Value

Enterprise Value	595.84
Net Debt	-53.62
Equity Value	649.45
Shares Outstanding	11.83
Equity Value Per Share	54.88