DCF Tool

VALE

Vale S.A. – Iron Ore Mining
Vale S.A., formerly Companhia Vale do Rio Doce is a Brazilian multinational corporation engaged in metals and mining and one of the largest logistics operators in Brazil. Vale is the largest producer of iron ore and nickel in the world.
Analysis Results
Intrinsic Value $96.81
Latest Price $13.49
Relative Value 86% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 16.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 16.4%, 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)
2023 20.7 19.0
2024 24.1 20.3
2025 28.1 21.7
2026 32.7 23.2
2027 38.0 24.7
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 554 billion. This corresponds to a present value of 330 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 109 billion. Adding in the terminal value gives a total present value of 439 billion.

There are presently 4.54 billion outstanding shares, so the intrinsic value per share is 96.81.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 15,526,000,000
Current Cash 4,797,000,000
Current Liabilities 13,891,000,000
Current Debt 889,000,000
Non-Cash Working Capital (NCWC) -2,273,000,000
Change in NCWC 1,849,000,000
EBIT 18,090,000,000
Tax Provision 2,971,000,000
Depreciation and Amortization 3,171,000,000
Capital Expenditure -5,446,000,000
Unlevered Free Cash Flow 14,946,979,121
Current Assets 21,384,000,000
Current Cash 11,905,000,000
Current Liabilities 15,198,000,000
Current Debt 1,597,000,000
Non-Cash Working Capital (NCWC) -4,122,000,000
Change in NCWC -1,534,000,000
EBIT 29,571,000,000
Tax Provision 4,697,000,000
Depreciation and Amortization 3,034,000,000
Capital Expenditure -5,033,000,000
Unlevered Free Cash Flow 21,336,230,019
Current Assets 24,403,000,000
Current Cash 14,258,000,000
Current Liabilities 14,594,000,000
Current Debt 1,861,000,000
Non-Cash Working Capital (NCWC) -2,588,000,000
Change in NCWC -28,000,000
EBIT 17,487,000,000
Tax Provision 438,000,000
Depreciation and Amortization 3,234,000,000
Capital Expenditure -4,430,000,000
Unlevered Free Cash Flow 14,721,582,008
Current Assets 17,042,000,000
Current Cash 8,176,000,000
Current Liabilities 13,845,000,000
Current Debt 2,419,000,000
Non-Cash Working Capital (NCWC) -2,560,000,000
Change in NCWC -3,960,000,000
EBIT 13,452,000,000
Tax Provision -595,000,000
Depreciation and Amortization 3,726,000,000
Capital Expenditure -3,704,000,000
Unlevered Free Cash Flow 9,514,000,000
Current Assets 15,292,000,000
Current Cash 5,784,000,000
Current Liabilities 9,111,000,000
Current Debt 1,003,000,000
Non-Cash Working Capital (NCWC) 1,400,000,000
Change in NCWC 593,000,000
EBIT 12,857,000,000
Tax Provision -172,000,000
Depreciation and Amortization 3,351,000,000
Capital Expenditure -3,784,000,000
Unlevered Free Cash Flow 13,017,000,000
Current Assets 15,367,000,000
Current Cash 4,328,000,000
Current Liabilities 11,935,000,000
Current Debt 1,703,000,000
Non-Cash Working Capital (NCWC) 807,000,000
Change in NCWC -427,000,000
EBIT 11,508,000,000
Tax Provision 1,495,000,000
Depreciation and Amortization 3,708,000,000
Capital Expenditure -3,831,000,000
Unlevered Free Cash Flow 8,760,470,302
Current Assets 13,978,000,000
Current Cash 4,262,000,000
Current Liabilities 10,142,000,000
Current Debt 1,660,000,000
Non-Cash Working Capital (NCWC) 1,234,000,000
Change in NCWC -2,609,000,000
EBIT 8,538,000,000
Tax Provision 2,781,000,000
Depreciation and Amortization 3,487,000,000
Capital Expenditure -4,951,000,000
Unlevered Free Cash Flow 1,491,029,809
Current Assets 15,473,000,000
Current Cash 3,591,000,000
Current Liabilities 10,545,000,000
Current Debt 2,506,000,000
Non-Cash Working Capital (NCWC) 3,843,000,000
Change in NCWC 578,000,000
EBIT 2,576,000,000
Tax Provision -5,100,000,000
Depreciation and Amortization 4,029,000,000
Capital Expenditure -8,371,000,000
Unlevered Free Cash Flow -1,188,000,000
Current Assets 16,594,000,000
Current Cash 4,122,000,000
Current Liabilities 10,626,000,000
Current Debt 1,419,000,000
Non-Cash Working Capital (NCWC) 3,265,000,000
Change in NCWC -4,633,000,000
EBIT 9,571,000,000
Tax Provision 1,200,000,000
Depreciation and Amortization 4,288,000,000
Capital Expenditure -11,813,000,000
Unlevered Free Cash Flow -9,982,492,594
Current Assets 20,611,000,000
Current Cash 5,324,000,000
Current Liabilities 9,164,000,000
Current Debt 1,775,000,000
Non-Cash Working Capital (NCWC) 7,898,000,000
Change in NCWC -11,000,000
EBIT 18,243,000,000
Tax Provision 6,833,000,000
Depreciation and Amortization 4,150,000,000
Capital Expenditure -13,105,000,000
Unlevered Free Cash Flow -7,938,083,413
Current Assets 22,897,000,000
Current Cash 6,078,000,000
Current Liabilities 12,585,000,000
Current Debt 3,675,000,000
Non-Cash Working Capital (NCWC) 7,909,000,000
Change in NCWC -794,000,000
EBIT 14,755,000,000
Tax Provision -833,000,000
Depreciation and Amortization 4,396,000,000
Capital Expenditure -15,777,000,000
Unlevered Free Cash Flow 2,580,000,000

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.