Abstract
This report aims to estimate the fair value for Ambev stock listed in the New York Stock Exchange (NYSE); a discounted cash flow (DCF) model was the main tool used to analyze this share. This method of valuing the firm was chosen due to Ambev being a huge steady firm who generates relatively stable and predictable cash flows. Although the company has its stock listed in the Brazilian stock market, I chose to evaluate the America Depositary Receipt (ADR) to maintain the whole financial statements, revenue forecast and balance sheet in United States Dollar, as for the investor perspective it makes much more sense since this way much of the forex volatility noise and the Brazilian Real inflation impacts can be minimized and have less impact in the predictability of the cash flows. Based on my assumptions for the forecast of the cash flows, I propose a recommendation to buy the share, meaning I consider the stock to be undervalued compared to my model.| Date of Award | 30 Jun 2025 |
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| Original language | English |
| Awarding Institution |
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| Supervisor | José Carlos Tudela Martins (Supervisor) |
UN SDGs
This student thesis contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 8 Decent Work and Economic Growth -
SDG 9 Industry, Innovation, and Infrastructure
Keywords
- Discounted cash flow
- Emerging market valuation
- Country risk premium
- Weighted average cost of capital
- Brazilian beverage industry
- Financial forecasting
- Monte Carlo simulation
- Free cash flow
Designation
- Mestrado em Finanças
Cite this
- Standard