DCF Tool

ABEV

Ambev S.A. – Breweries
Ambev, formally Companhia de Bebidas das Américas, is a Brazilian brewing company now merged into Anheuser-Busch InBev. Its name translates to "Beverage Company of the Americas", hence the "Ambev" abbreviation. It was created on July 1, 1999, with the merger of two breweries, Brahma and Antarctica.
Analysis Results
Intrinsic Value $2.81
Latest Price $2.97
Relative Value 6% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -2.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -2.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 3.21 2.97
2023 3.15 2.7
2024 3.08 2.45
2025 3.02 2.22
2026 2.96 2.02
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 50.5 billion. This corresponds to a present value of 31.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 12.4 billion. Adding in the terminal value gives a total present value of 44.2 billion.

There are presently 15.8 billion outstanding shares, so the intrinsic value per share is 2.81.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,932,962,397
Current Cash 3,328,062,460
Current Liabilities 6,975,895,180
Current Debt 157,515,929
Non-Cash Working Capital (NCWC) -3,213,479,314
Change in NCWC -482,045,297
EBIT 2,884,734,811
Tax Provision 114,260,073
Depreciation and Amortization 5,396,700,000
Capital Expenditure -7,677,100,000
Unlevered Free Cash Flow -11,179,159
Current Assets 6,804,480,190
Current Cash 3,617,710,904
Current Liabilities 6,445,506,571
Current Debt 527,303,269
Non-Cash Working Capital (NCWC) -2,731,434,016
Change in NCWC -579,784,251
EBIT 2,740,174,913
Tax Provision 339,335,480
Depreciation and Amortization 994,883,494
Capital Expenditure -903,489,138
Unlevered Free Cash Flow 1,893,891,500
Current Assets 6,868,960,523
Current Cash 2,963,159,516
Current Liabilities 6,219,867,117
Current Debt 162,416,345
Non-Cash Working Capital (NCWC) -2,151,649,765
Change in NCWC 274,365,153
EBIT 4,011,044,610
Tax Provision 187,682,768
Depreciation and Amortization 1,162,653,342
Capital Expenditure -1,260,685,073
Unlevered Free Cash Flow 3,953,497,789
Current Assets 6,526,817,577
Current Cash 2,957,316,051
Current Liabilities 6,397,644,845
Current Debt 402,128,399
Non-Cash Working Capital (NCWC) -2,426,014,919
Change in NCWC 1,504,401,006
EBIT 4,407,951,865
Tax Provision 461,136,091
Depreciation and Amortization 1,036,654,341
Capital Expenditure -920,159,243
Unlevered Free Cash Flow 5,429,738,782
Current Assets 7,465,192,935
Current Cash 3,130,802,493
Current Liabilities 8,664,341,270
Current Debt 399,534,903
Non-Cash Working Capital (NCWC) -3,930,415,926
Change in NCWC -1,036,363,352
EBIT 4,965,510,017
Tax Provision 1,534,021,946
Depreciation and Amortization 1,090,906,359
Capital Expenditure -967,533,460
Unlevered Free Cash Flow 2,101,884,981
Current Assets 7,341,878,015
Current Cash 2,507,945,302
Current Liabilities 8,843,891,239
Current Debt 1,115,905,953
Non-Cash Working Capital (NCWC) -2,894,052,573
Change in NCWC 757,958,469
EBIT 4,885,569,412
Tax Provision 96,818,811
Depreciation and Amortization 1,079,452,902
Capital Expenditure -1,270,232,064
Unlevered Free Cash Flow 5,337,887,663
Current Assets 7,192,081,201
Current Cash 3,514,263,047
Current Liabilities 7,656,253,593
Current Debt 326,424,395
Non-Cash Working Capital (NCWC) -3,652,011,043
Change in NCWC 237,127,043
EBIT 4,847,901,399
Tax Provision 923,112,239
Depreciation and Amortization 780,969,922
Capital Expenditure -1,336,381,628
Unlevered Free Cash Flow 3,462,704,413
Current Assets 7,718,733,730
Current Cash 3,885,749,492
Current Liabilities 8,126,966,250
Current Debt 404,843,925
Non-Cash Working Capital (NCWC) -3,889,138,086
Change in NCWC -804,950,696
EBIT 5,932,311,500
Tax Provision 747,203,661
Depreciation and Amortization 890,902,402
Capital Expenditure -1,673,109,126
Unlevered Free Cash Flow 3,516,696,454

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