Discounted Cash Flow (DCF) Analysis Levered

Enbridge Inc. (ENB)

$41.78

+0.98 (+2.40%)
All numbers are in Millions, Currency in USD
Stock DCF: -3.84 | 41.78 | 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 44,37846,37850,06939,08747,07148,360.4849,685.2951,046.3852,444.7753,881.46
Revenue (%)
Operating Cash Flow 6,58410,5029,3989,7819,2569,762.8410,030.2910,305.0610,587.3610,877.40
Operating Cash Flow (%)
Capital Expenditure -8,864-7,346-5,692-5,620-8,093-7,617.06-7,825.72-8,040.10-8,260.36-8,486.65
Capital Expenditure (%)
Free Cash Flow -2,2803,1563,7064,1611,1632,145.782,204.562,264.962,3272,390.75

Weighted Average Cost Of Capital

Share price $ 41.78
Beta 0.906
Diluted Shares Outstanding 2,020
Cost of Debt
Tax Rate 19.92
After-tax Cost of Debt 2.87%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.402
Total Debt 75,640
Total Equity 84,395.60
Total Capital 160,035.60
Debt Weighting 47.26
Equity Weighting 52.74
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 44,37846,37850,06939,08747,07148,360.4849,685.2951,046.3852,444.7753,881.46
Operating Cash Flow 6,58410,5029,3989,7819,2569,762.8410,030.2910,305.0610,587.3610,877.40
Capital Expenditure -8,864-7,346-5,692-5,620-8,093-7,617.06-7,825.72-8,040.10-8,260.36-8,486.65
Free Cash Flow -2,2803,1563,7064,1611,1632,145.782,204.562,264.962,3272,390.75
WACC
PV LFCF 1,660.611,620.851,582.041,544.151,507.18
SUM PV LFCF 9,716.16

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.26
Free cash flow (t + 1) 2,438.56
Terminal Value 74,802.60
Present Value of Terminal Value 57,889.51

Intrinsic Value

Enterprise Value 67,605.68
Net Debt 75,354
Equity Value -7,748.32
Shares Outstanding 2,020
Equity Value Per Share -3.84