Pet Retail Market and Valuation Outlook
Appendix 11
Source: Team 7
*0
82
11. Cost of Capital: WACC
Kd
Index
Debt (BRL K)
21E
22E
23E
24E
25E
26E
27E
28E
29E
30E
Perpetuity
Banco Santander - Borrow
Banco Santander - Borrow
Banco Votorantim - Borrow
Banco Safra Borrow
Banco ABC - Borrow
Banco do Brasil - Borrow
1,95% a.a. Selic Anual
3,00% a.a. + Selic Anual
30,000
10%
12%
9%
9%
8%
8%
8%
8%
8%
8%
20,000
11%
13%
10%
10%
10%
10%
10%
10%
10%
10%
3,00% a.a. + Selic Anual
21,159
11%
13%
10%
10%
10%
10%
10%
10%
10%
10%
3,30% a.a. Selic Anual
10,000
12%
14%
11%
10%
10%
10%
10%
10%
10%
10%
3,40% a.a. + Selic Anual
30,000
12%
14%
11%
10%
10%
10%
10%
10%
10%
10%
2,50% a.a. Selic Anual
20,000
11%
13%
10%
9%
9%
9%
9%
9%
9%
9%
Banco Santander - Borrow
3,49% a.a. Selic Anual
150,000
12%
14%
11%
10%
10%
10%
10%
10%
10%
10%
Promissory Note
2,90% a.a. + Selic Anual
60,000
11%
13%
10%
10%
9%
9%
9%
9%
9%
9%
Debentures
1,40% a.a. + Selic Anual
200,000
10%
12%
9%
8%
8%
8%
8%
8%
8%
8%
Debentures
1,30% a.a. Selic Anual
200,000
10%
12%
9%
8%
8%
8%
8%
8%
8%
8%
Cost of Debt
10.4%
12%
9%
9%
9%
9%
9%
9%
9%
9%
9.3%
21E
22E
23E
24E
25E
26E
27E
28E
29E
30E
Perpetuity
Ke
Risk Free
1.6%
1.6%
1.6%
1.6%
1.6%
1.6%
1.6%
1.6%
1.6%
1.6%
Unlevered Beta
0.95
0.95
0.95
0.95
0.95
0.95
0.95
0.95
0.95
0.95
Debt
Equity
502,720
669,306
534,206
759,167
1,025,967
1,292,150
1,525,780
1,775,566
2,046,031
2,254,720
1,365,332
1,477,182
1,639,267
1,874,143
2,149,886
2,482,106
2,743,088
2,971,406
3,147,267
3,243,245
Tax Rate
-34%
-34%
-34%
-34%
-34%
-34%
-34%
-34%
-34%
-34%
Levered Beta
1.2
1.2
1.2
1.2
1.2
1.3
1.3
1.3
1.4
1.4
Equity Risk Premium
4.3%
4.3%
4.3%
4.3%
4.3%
4.3%
4.3%
4.3%
4.3%
4.3%
Brazil Risk Premium
2.86%
2.91%
2.91%
2.91%
2.91%
2.91%
2.91%
2.91%
2.91%
2.91%
Nominal Ke (USA)
9.5%
9.9%
9.5%
9.7%
9.9%
10.0%
10.1%
10.3%
10.4%
10.5%
USA CPI
6%
2%
2%
2%
2%
2%
2%
2%
2%
2%
Real Ke (USA)
2.9%
7.6%
6.9%
7.1%
7.3%
7.4%
7.5%
7.6%
7.7%
7.8%
Brazil CPI
9%
5%
3%
3%
3%
3%
3%
3%
3%
3%
Cost of Equity
WACC
11.7%
13%
10%
10%
10%
11%
11%
11%
11%
11%
10.9%
21E
22E
23E
24E
25E
26E
27E
28E
29E
30E
Perpetuity
6.9%
Cost of Debt Post-Tax
8.2%
6.2%
5.9%
5.7%
5.7%
5.7%
5.7%
5.7%
5.7%
Debt/(Debt Equity)
27%
31%
25%
29%
32%
34%
36%
37%
39%
41%
Cost of Equity
11.7%
12.5%
10.4%
10.3%
10.5%
10.6%
10.7%
10.8%
11.0%
11.1%
Equity/(Debt + Equity)
73%
69%
75%
71%
68%
66%
64%
63%
61%
59%
WACC
10.4%
11.2%
9.4%
9.0%
8.9%
8.9%
8.9%
8.9%
8.9%
8.9%
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