Pet Retail Market and Valuation Outlook slide image

Pet Retail Market and Valuation Outlook

Appendix 12 83 | 12. DCF: FCFF Free Cash Flow to Firm (=) EBIT (-) EBIT Taxes (=) NOPAT 21E 22E 162,059 232,828 119,449 (42,610) (79,162) 153,667 (+) D&A 88,844 (+/-) Change in NWK (57,610) (+/-) Maintenance Capex (73,077) (+/-) Expansion Capex (=) Reinvestment K=) FCFF Period Present Value of Cash Flows 24E 517,142 (175,828) 341,314 109,949 141,456 172,728 (70,352) (97,152) (114,214) (86,923) (108,556) (126,728) (145,777) (220,396) (212,085) (220,496) (276,464) (377,671) (417,793) (461,438) (68,171) (114,055) (49,801) 52,603 0.25 1.25 2.25 3.25 (66,506) (100,787) (39,862) 38,139 23E 343,236 (116,700) 226,536 25E 26E 27E 28E 29E 30E 726,381 932,229 1,107,034 1,294,026 1,498,498 1,643,713 35,390,145 (246,969) (316,958) (376,391) (439,969) (509,489) (558,862) (12,032,649) 479,411 615,271 730,642 854,057 989,009 1,084,850 23,357,495 206,034 241,996 279,582 319,174 361,248 405,751 8,736,067 (131,640) (125,113) (125,349) (131,751) (140,041) (113,340) (143,169) (158,312) (171,188) (182,040) (191,089) (198,533) (235,726) (371,986) (262,757) (273,880) (283,377) (290,068) (510,535) (655,412) (559,294) (587,672) 174,911 201,856 450,931 585,560 4.25 5.25 6.25 7.25 114,868 120,075 242,970 285,789 Perpetuity g 5.5% WACC 10.4% (8,736,067) (5,138,649) Term. ROIC 25% (614,507) (601,941) (13,874,716) 735,750 8.25 325,264 888,660 9.25 355,854 18,218,846 9.25 7,295,532 FCFF 21E-30E 15% Cost of Capital (WACC) 10y Cashflow 1,275,804 Perpertuity 85% Perpetuity 7,295,532 Total 100% 57% 8.4% 8.9% 9.4% 9.9% 10.4% 10.9% 11.4% 11.9% 12.4% Enterprise Value 8,571,336 4.0% 95% 70% 51% 34% 20% 9% -1% -10% -17% Net Debt 134,360 Equity Value Number of shares (K) Petz Target Price 8,436,976 393,991 BRL 21.41 Zee.Dog Target Price BRL 3.97 Target Price BRL 25.39 Stock Price Upside BRL 18.21 39% Perpetuity Growth (g) 4.4% 106% 79% 57% 39% 24% 12% 1% -8% -16% 4.8% 119% 88% 64% 45% 29% 15% 4% -6% -14% 5.1% 135% 100% 73% 51% 34% 19% 7% -3% -12% 5.5% 156% 114% 83% 59% 39% 24% 11% 0% -10% 5.9% 182% 132% 95% 68% 46% 29% 15% 3% -7% 6.3% 218% 154% 111% 79% 54% 35% 19% 6% -4% 6.6% 269% 185% 130% 92% 63% 42% 24% 10% -1% 7.0% 347% 226% 155% 108% 75% 50% 31% 15% 2% Source: Team 7
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