DCF MODEL
YOUR DISCOUNTED CASH FLOW LIKE PIECE OF CAKE
Based on the present value
of the expected future cash
flows, discounted at an
appropriate discount rate.
Assumptions
Discount rate - WACC 10.5%
Long term CF growth rate 1.5%
Discounted Cash Flows 2024 2025 2026 2027 2028
EBIT 1,938 1,589 1,655 2,019 2,372
Tax (286) (232) (241) (295) (346)
Non-cash items added back 317 549 692 514 527
Net Working capital adjustments (1,193) (169) (215) (240) (272)
CAPEX adjustments (750) (1,050) (450) (150) (150)
Free Cash Flow 27 687 1,440 1,849 2,131
Discount factor - DF 1.105 1.222 1.350 1.492 1.649
DCF 24 563 1,067 1,239 1,292
Valuation Date
WACC calculation Amount Enterprise value 14,376
Risk-free rate 2.0% Cumulated DCF 4,185
Financial liabilities (700)
Equity risk premium 4.72%
Terminal Value 14,533
Unlevered industry Beta 0.81 Interest bearing debt (700)
Gearing (ND / E) 56.4% Discounted Terminal Value 8,812 Long-term operating provisions (50)
Relevered industry beta 1.15 DCF value of operations 12,997 Nonoperating provisions (75)
Sub-total 7.4%
Excess cash and marketable
Size premium 0.5% Contingent liabilities (40)
securities 1,290
Country risk premium 0.5% Debt equivalents (165)
Specific risk premium 0.7% Excess real estate 25
Cost of equity Investments in nonconsolidated Convertible debt (25)
9.1%
Cost of debt pre tax 3.58% companies 12 Employee stock options (50)
Cost of debt pre tax 3.6% Tax loss carryforwards 12 Noncontrolling interests (150)
Corporate tax rate 25.50% Hybrid claims and non controlling
Discontinued operations 40
Non-operating assets interests
Cost of Debt after tax 2.7% (225)
adjustments 1,379
Gearing (ND / EV) 36.0%
Enterprise value 14,376 Equity value 13,286
WACC 6.8%
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