CASH3.SA
MELIUZ ON NMClosedCASH3.SA discounted cash flow valuation
CASH3.SA Fair Value
Reverse DCF: today's price implies -6.5% a year of FCF growth for years 1–5, against 3.6% in this model.
Model: 3.6% from analyst next-year revenue growth. Fades linearly to terminal growth by year 10.
Model: 9.09% (CAPM, see the build-up).
Long-run growth after year 10; keep it at or below nominal GDP.
Value Bridge
| PV of free cash flow, years 1–10 | BRL 318.55M |
|---|---|
| PV of terminal value (57% of EV) | BRL 416.50M |
| Enterprise value | BRL 735.05M |
| + Cash & investments | BRL 112.64M |
| − Total debt | −BRL 3.00K |
| Equity value | BRL 847.69M |
| ÷ Shares outstanding | 104.38M |
| Value per share | BRL 8.12 |
| Market cap | BRL 522.96M |
Discount Rate Build-up
| Risk-free rate (10-yr Treasury) | 5.19% |
|---|---|
| Beta (adjusted toward 1) | 0.87 |
| Equity risk premium | 4.50% |
| Cost of equity (CAPM) | 9.09% |
| Pre-tax cost of debt | 12.00% |
| Tax rate | 34.0% |
| Debt / (equity + debt) | 0.0% |
| WACC | 9.09% |
Beta is Yahoo's, held between 0.5 and 2.5, then moved a third of the way toward 1. Cost of debt is interest expense ÷ total debt, held between the risk-free rate and 12%. WACC is at least the risk-free rate plus 2%.
Free Cash Flow: History and Projection
Sensitivity: Value per Share
| WACC ↓ / g → | 2.00% | 2.50% | 3.00% | 3.50% | 4.00% |
|---|---|---|---|---|---|
| 7.09% | 9.94 | 10.67 | 11.58 | 12.75 | 14.29 |
| 8.09% | 8.47 | 8.94 | 9.51 | 10.21 | 11.07 |
| 9.09% | 7.41 | 7.74 | 8.12 | 8.57 | 9.11 |
| 10.09% | 6.62 | 6.85 | 7.12 | 7.43 | 7.80 |
| 11.09% | 6.00 | 6.17 | 6.37 | 6.60 | 6.85 |
Green is above today's price, red below (full colour at ±30%). The outlined centre cell is the current inputs.
Projected Cash Flows
| Year | Growth | Free cash flow | Discount factor | Present value |
|---|---|---|---|---|
| Base (TTM) | — | BRL 42.00M | — | — |
| Year 1 | 3.6% | BRL 43.51M | 0.917 | BRL 39.88M |
| Year 2 | 3.6% | BRL 45.07M | 0.840 | BRL 37.88M |
| Year 3 | 3.6% | BRL 46.70M | 0.770 | BRL 35.97M |
| Year 4 | 3.6% | BRL 48.38M | 0.706 | BRL 34.16M |
| Year 5 | 3.6% | BRL 50.12M | 0.647 | BRL 32.44M |
| Year 6 | 3.5% | BRL 51.86M | 0.593 | BRL 30.77M |
| Year 7 | 3.4% | BRL 53.61M | 0.544 | BRL 29.16M |
| Year 8 | 3.2% | BRL 55.34M | 0.499 | BRL 27.59M |
| Year 9 | 3.1% | BRL 57.07M | 0.457 | BRL 26.08M |
| Year 10 | 3.0% | BRL 58.78M | 0.419 | BRL 24.63M |
Method
Two-stage free-cash-flow model, the same as the bot's lgf dcf: five years at the chosen growth rate, a straight-line fade to terminal growth by year ten, then a Gordon-growth terminal value. Everything is discounted at WACC.
Base cash flow is the trailing four quarters of operating cash flow minus capital expenditure (the latest fiscal year when quarters are missing). Default growth uses analyst long-term growth when Yahoo publishes it, else next year's revenue growth (steadier than one year's EPS), else next year's EPS growth, else revenue CAGR, held between −2% and 25%. Terminal growth defaults to 3%.
A DCF is only as good as its inputs. The terminal value is usually most of the answer, so read the sensitivity grid before the headline number. This is a model, not investment advice.