Pet Retail Market and Valuation Outlook
...
64
IRR
IRR: Indicate Healthy Returns
5Y P/E IRR and its sensitivity to Gross Revenue CAGR reinforces our BUY recommendation...
5-Y P/E IRR indicates returns above Cost of Equity (Ke)...
Net Income Evolution; [BRL mn]
...and our sensitivity analysis reforces our thesis with 70% BUY...
IRR Sensitivity Analysis; [%]
435
307
215
162
9690
21E
22E
23E
24E
25E
IRR
23.9%
Exit P/E
28.7x
Net Revenue CAGR (20'-25E)
13%
16%
2%
-1% 1% 2%
-2% 1% 3% 5% 7%
5% 7% 9%
P/E FWD Exit 2025E
24% 21x 23x 25x 27x 29x 31x
4% -13% -11% -9% -8% -6% -4% -3%
7% -9% -7% -5% -4% -2% 0% 1%
10% -6% -3%
33x
35x
37x
-1%
0%
3%
4%
4% 6%
7%
9%
8% 10%
12%
13%
11% 13% 14%
16%
18%
19%
6%
9%
11%
13%
15% 17% 19%
21%
22%
22%
10%
13% 15%
17%
19%
21% 23%
25%
27%
25%
14%
17%
19%
22%
24% 26%
28%
30% 32%
28%
18% 21% 24%
26%
28%
30%
33%
34% 36%
31%
23%
25% 28% 31%
34%
27%
30% 32% 35%
A 5-Y through P/E accounts for a
600bps spread over Cost of Equity
Overview | Promissing Industry | Assertive Hub-and-Spoke Strategy | Expansion to Outpace | Healthy and Solid Ecosystem | ESG | Valuation & Risks
Source: Team 7
37% 31% 34% 37% 40%
40%
35% 38% 41% 44%
43% 40% 43% 46% 49%
46% 44%
47% 51% 53%
33% 35% 37% 39% 41%
37% 40% 42% 44% 46%
42% 44% 47% 49% 51%
47% 49% 52% 54% 56%
51% 54% 56% 59% 61%
56% 59% 61% 64% 66%View entire presentation