Discounted Cash Flow (DCF) Analysis Levered

BCE Inc. (BCE)

$45.24

-0.99 (-2.14%)
All numbers are in Millions, Currency in USD
Stock DCF: 107.78 | 45.24 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 22,71923,46823,96422,88323,44923,646.7223,846.1224,047.1924,249.9624,454.43
Revenue (%)
Operating Cash Flow 7,3587,3847,9587,7548,0087,807.937,873.777,940.168,007.118,074.63
Operating Cash Flow (%)
Capital Expenditure -4,034-4,027-3,988-4,288-6,919-4,720.01-4,759.81-4,799.94-4,840.42-4,881.23
Capital Expenditure (%)
Free Cash Flow 3,3243,3573,9703,4661,0893,087.923,113.963,140.213,166.693,193.40

Weighted Average Cost Of Capital

Share price $ 45.24
Beta 0.387
Diluted Shares Outstanding 904.40
Cost of Debt
Tax Rate 27.85
After-tax Cost of Debt 2.68%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.521
Total Debt 29,673
Total Equity 40,915.06
Total Capital 70,588.06
Debt Weighting 42.04
Equity Weighting 57.96
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 22,71923,46823,96422,88323,44923,646.7223,846.1224,047.1924,249.9624,454.43
Operating Cash Flow 7,3587,3847,9587,7548,0087,807.937,873.777,940.168,007.118,074.63
Capital Expenditure -4,034-4,027-3,988-4,288-6,919-4,720.01-4,759.81-4,799.94-4,840.42-4,881.23
Free Cash Flow 3,3243,3573,9703,4661,0893,087.923,113.963,140.213,166.693,193.40
WACC
PV LFCF 2,959.762,860.842,765.232,672.822,583.49
SUM PV LFCF 13,842.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.33
Free cash flow (t + 1) 3,257.26
Terminal Value 139,796.70
Present Value of Terminal Value 113,096.95

Intrinsic Value

Enterprise Value 126,939.09
Net Debt 29,466
Equity Value 97,473.09
Shares Outstanding 904.40
Equity Value Per Share 107.78