Pet Retail Market and Valuation Outlook
60
60
DCF: FCFF
DCF: BRL 25.4 target price with a 39% upside
Petz proved to be a great company, with accurate projections, but how has this been reflected in the share price?
As a result, we have a FCFF divided into two main phases...
...being able to generate value for shareholders, even with WACC = 10%...
WACC Breakdown; [%]
FCFF; [BRL mn]
Expansion Phase
Densification Phase
Risk Free
1.64%
889
ERP
4.31%
CRP
2.91%
Zee.Dog's
736
Inflation Dif.
2.85%
Acquisition
586
Ke
11.7%
Kd
6.9%
451
WACC
10.4%
50 Stores
Opening
|
202
175
45
-68
-115 -54
21E
22E 23E 24E 25E
26E 27E 28E 29E 30E
Using our company assumptions, we calculate the fair return in
ten years using the DCF method
To perpetuity, we assume, in general:
==
g (perpetuity) = 5.5%, Incremental ROIC = 25%, and Taxes = 34%
Overview | Promissing Industry | Assertive Hub-and-Spoke Strategy | Expansion to Outpace | Healthy and Solid Ecosystem | ESG | Valuation & Risks
Source: Team 7View entire presentation