Discounted Cash Flow (DCF) Analysis Levered

Enbridge Inc. (ENB)

$38.03

-2.04 (-5.09%)
All numbers are in Millions, Currency in USD
Stock DCF: -5.68 | 38.03 | 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 $ 38.03
Beta 0.910
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 7.992
Total Debt 75,640
Total Equity 76,820.60
Total Capital 152,460.60
Debt Weighting 49.61
Equity Weighting 50.39
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 2,034.881,982.571,931.611,881.961,833.59
SUM PV LFCF 9,664.61

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.45
Free cash flow (t + 1) 2,438.56
Terminal Value 70,683.04
Present Value of Terminal Value 54,210.36

Intrinsic Value

Enterprise Value 63,874.98
Net Debt 75,354
Equity Value -11,479.02
Shares Outstanding 2,020
Equity Value Per Share -5.68