#
Bakkavor Group Plc
LSE:BAKK

## DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Dec 2, 2023.

Estimated DCF Value of one
**BAKK**
stock is
138.09
GBX.
Compared to the current market price of 85.2 GBX, the stock is
Undervalued by 38%.

## 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.

###
DCF Model
Base Case Scenario

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 | 1.2B GBP |

+ Cash & Equivalents | 40.2m GBP |

+ Investments | 3.7m GBP |

Firm Value | 1.2B GBP |

- Debt | 395m GBP |

Equity Value | 800m GBP |

/ Shares Outstanding | 579m |

Value per Share | 1.38 GBP |

GBP / GBX Exchange Rate | 100 |

BAKK DCF Value | 138.09 GBX |

To view the process of calculating the Present Value of Bakkavor Group Plc' future free cash flow, see the Present Value Calculation block.

## What is the DCF value of one BAKK stock?

Estimated DCF Value of one
**BAKK**
stock is
138.09
GBX.
Compared to the current market price of 85.2 GBX, the stock is
Undervalued by 38%.

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
**Bakkavor Group Plc**'s future free cash flow and discount it at a selected discount rate to calculate its
**Present Value (1.2B GBP)**.

**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
138.09 GBX**
per one
**BAKK**
share.