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Ambev SA

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Ambev SA
Price: 14.48 BRL -1.9% Market Closed
Updated: May 31, 2023

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on May 30, 2023.

Estimated DCF Value of one ABEV3 stock is 9.81 BRL. Compared to the current market price of 14.48 BRL, the stock is Overvalued by 32%.

Base Case
9.81 BRL
Overvaluation 32%
DCF Value
Worst Case
Base Case
Best Case
DCF Value
Worst Case
Base Case
Best Case
DCF Value: 9.81 BRL
Ambev SA Competitors:
DCF Valuation
Carlsberg A/S
Grupa Zywiec SA
Sapporo Holdings Ltd
Anheuser Busch Inbev SA
Beijing Yanjing Brewery Co Ltd
Waterloo Brewing Ltd
Lanzhou Huanghe Enterprise Co Ltd
Molson Coors Beverage Co

Present Value Calculation

The first step in the DCF calculation process is to estimate the company's future free cash flow. Once free cash flow is forecasted, it is discounted at a risk-appropriate discount rate. The resulting value is the present value of the company's free cash flow. You can change any model inputs below.

Available Valuation Models
1 valuation model available
Alpha Spread
Updated on May 30, 2023
Default Valuation
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Model Settings
Discount Rate
Forecast Period
5 Years
Terminal Growth
Discount Rate
Terminal Growth
Growth Period
5 Years
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DCF Model
Base Case Scenario

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DCF Model

To view the process of deriving the DCF Value of one share from the estimated Present Value, see the DCF Value Calculation block.

DCF Value Calculation

Depending on which type of operating model is chosen (equity or whole firm valuation model), the resulting value is either the value of equity or the value of the entire firm. In the case of the latter, to move from the value of the firm to the value of equity, liabilities are subtracted and assets are added.

Capital Structure
From Present Value to DCF Value

Present Value 145B BRL
+ Cash & Equivalents 12.2B BRL
+ Investments 1.5B BRL
Firm Value 159B BRL
- Debt 2.7B BRL
- Minority Interest 1.4B BRL
Equity Value 155B BRL
/ Shares Outstanding 15.7B
ABEV3 DCF Value 9.81 BRL
Overvalued by 32%

To view the process of calculating the Present Value of Ambev SA' future free cash flow, see the Present Value Calculation block.

Valuation Analysis

After the valuation process, in order to gain a deeper understanding of the relationship between risk and opportunity, it is useful to study the dynamic of company's valuation under various inputs to the DCF model in use.

DCF Financials
Financials used in DCF Calculation

91.6B 113B
Operating Income
20.3B 27B
20.6B 22.5B

Sensitivity Analysis
DCF Value Sensitivity Analysis

See Also

Similar Stocks
What is the DCF value of one ABEV3 stock?

Estimated DCF Value of one ABEV3 stock is 9.81 BRL. Compared to the current market price of 14.48 BRL, the stock is Overvalued by 32%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Using the DCF Operating Model we project Ambev SA's future free cash flow and discount it at a selected discount rate to calculate its Present Value (145B BRL).

2. DCF Value Calculation. We use the company's capital structure to calculate the total Equity Value based on the previously computed Present Value of the free cash flow. Dividing the Equity Value by the number of shares outstanding gives us the DCF Value of 9.81 BRL per one ABEV3 share.