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 7View entire presentation