Discounted Cash Flow (DCF) Analysis Levered
Enbridge Inc. (ENB)
$41.78
+0.98 (+2.40%)
All numbers are in Millions, Currency in USD
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 | 44,378 | 46,378 | 50,069 | 39,087 | 47,071 | 48,360.48 | 49,685.29 | 51,046.38 | 52,444.77 | 53,881.46 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 6,584 | 10,502 | 9,398 | 9,781 | 9,256 | 9,762.84 | 10,030.29 | 10,305.06 | 10,587.36 | 10,877.40 |
| 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 | -2,280 | 3,156 | 3,706 | 4,161 | 1,163 | 2,145.78 | 2,204.56 | 2,264.96 | 2,327 | 2,390.75 |
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 | 44,378 | 46,378 | 50,069 | 39,087 | 47,071 | 48,360.48 | 49,685.29 | 51,046.38 | 52,444.77 | 53,881.46 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 6,584 | 10,502 | 9,398 | 9,781 | 9,256 | 9,762.84 | 10,030.29 | 10,305.06 | 10,587.36 | 10,877.40 |
| 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 | -2,280 | 3,156 | 3,706 | 4,161 | 1,163 | 2,145.78 | 2,204.56 | 2,264.96 | 2,327 | 2,390.75 |
| WACC | ||||||||||
| PV LFCF | 1,660.61 | 1,620.85 | 1,582.04 | 1,544.15 | 1,507.18 | |||||
| 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 |