Discounted Cash Flow (DCF) Analysis Levered

BP p.l.c. (BP)

$34.68

-0.47 (-1.34%)
All numbers are in Millions, Currency in USD
Stock DCF: 17.49 | 34.68 | overvalue

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 240,208298,756278,397180,366157,739145,830.33134,820.71124,642.28115,232.27106,532.69
Revenue (%)
Operating Cash Flow 18,93122,87325,77012,16223,61213,563.8912,539.8711,593.1610,717.929,908.76
Operating Cash Flow (%)
Capital Expenditure -16,562-16,707-15,418-12,306-10,887-9,260.19-8,561.08-7,914.75-7,317.22-6,764.80
Capital Expenditure (%)
Free Cash Flow 2,3696,16610,352-14412,7254,303.703,978.793,678.403,400.703,143.96

Weighted Average Cost Of Capital

Share price $ 34.68
Beta 0.651
Diluted Shares Outstanding 3,376.73
Cost of Debt
Tax Rate 50.32
After-tax Cost of Debt 1.93%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.689
Total Debt 69,787
Total Equity 117,105.04
Total Capital 186,892.04
Debt Weighting 37.34
Equity Weighting 62.66
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 240,208298,756278,397180,366157,739145,830.33134,820.71124,642.28115,232.27106,532.69
Operating Cash Flow 18,93122,87325,77012,16223,61213,563.8912,539.8711,593.1610,717.929,908.76
Capital Expenditure -16,562-16,707-15,418-12,306-10,887-9,260.19-8,561.08-7,914.75-7,317.22-6,764.80
Free Cash Flow 2,3696,16610,352-14412,7254,303.703,978.793,678.403,400.703,143.96
WACC
PV LFCF 4,102.283,615.073,185.732,807.382,473.96
SUM PV LFCF 16,184.41

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.91
Free cash flow (t + 1) 3,206.84
Terminal Value 110,200.61
Present Value of Terminal Value 86,716.07

Intrinsic Value

Enterprise Value 102,900.48
Net Debt 43,846
Equity Value 59,054.48
Shares Outstanding 3,376.73
Equity Value Per Share 17.49