Discounted Cash Flow (DCF) Analysis Levered
Brookfield Business Partners L.P. (BBU)
$19.35
+0.71 (+3.81%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 37,168 | 43,032 | 37,635 | 46,587 | 57,545 | 64,816.26 | 73,006.30 | 82,231.22 | 92,621.78 | 104,325.27 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,341 | 2,163 | 4,205 | 1,693 | 1,011 | 3,266.54 | 3,679.30 | 4,144.21 | 4,667.86 | 5,257.68 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -545 | -1,205 | -1,405 | -1,450 | -1,748 | -1,834.28 | -2,066.06 | -2,327.12 | -2,621.17 | -2,952.38 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 796 | 958 | 2,800 | 243 | -737 | 1,432.26 | 1,613.24 | 1,817.08 | 2,046.69 | 2,305.30 |
Weighted Average Cost Of Capital
| Share price | $ 19.35 |
|---|---|
| Beta | 1.354 |
| Diluted Shares Outstanding | 150.60 |
| Cost of Debt | |
| Tax Rate | -6.49 |
| After-tax Cost of Debt | -5.44% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.083 |
| Total Debt | 46,693 |
| Total Equity | 2,914.11 |
| Total Capital | 49,607.11 |
| Debt Weighting | 94.13 |
| Equity Weighting | 5.87 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 37,168 | 43,032 | 37,635 | 46,587 | 57,545 | 64,816.26 | 73,006.30 | 82,231.22 | 92,621.78 | 104,325.27 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,341 | 2,163 | 4,205 | 1,693 | 1,011 | 3,266.54 | 3,679.30 | 4,144.21 | 4,667.86 | 5,257.68 |
| Capital Expenditure | -545 | -1,205 | -1,405 | -1,450 | -1,748 | -1,834.28 | -2,066.06 | -2,327.12 | -2,621.17 | -2,952.38 |
| Free Cash Flow | 796 | 958 | 2,800 | 243 | -737 | 1,432.26 | 1,613.24 | 1,817.08 | 2,046.69 | 2,305.30 |
| WACC | ||||||||||
| PV LFCF | 1,500.22 | 1,769.97 | 2,088.21 | 2,463.68 | 2,906.65 | |||||
| SUM PV LFCF | 10,728.73 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | -4.53 |
| Free cash flow (t + 1) | 2,351.41 |
| Terminal Value | -36,009.31 |
| Present Value of Terminal Value | -45,402.54 |
Intrinsic Value
| Enterprise Value | -34,673.81 |
|---|---|
| Net Debt | 43,823 |
| Equity Value | -78,496.81 |
| Shares Outstanding | 150.60 |
| Equity Value Per Share | -521.23 |