Central Puerto S.A.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF in USD: $243.4M normalized FCF base (TTM 371,447M ARS converted at ~0.000655 USD/ARS); 6% annual FCF growth yrs 1-5 (Argentine power demand recovery); 3% yrs 6-10; 14% discount rate (Argentina country/currency risk); 2% terminal growth; $667.27M net debt (1,024,855M ARS debt vs. 6,641M ARS cash, converted); 150M ADR-equivalent shares (1.50B ordinary shares at 10 ordinary shares per ADR).

Reasoning: Central Puerto is Argentina's largest private power generator with strong peso-denominated cash flow, but given Argentina's history of currency devaluation and capital controls, I applied a high discount rate to compensate for currency/convertibility risk when valuing the USD-traded ADR, rather than assuming ARS cash flows translate reliably into dollar value over a 10-year horizon.