Discounted Cash Flow (DCF) Analysis Levered

Hess Midstream LP (HESM)

$34.64

+0.55 (+1.61%)
All numbers are in Millions, Currency in USD
Stock DCF: 127.00 | 34.64 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 848.301,091.901,203.801,275.201,348.601,519.371,711.771,928.532,172.742,447.87
Revenue (%)
Operating Cash Flow 470.70641.70795.50861.10385839.95946.311,066.141,201.151,353.25
Operating Cash Flow (%)
Capital Expenditure -306.40-301.10-163.20-238.20-323.43-364.39-410.53-462.52-521.08-587.07
Capital Expenditure (%)
Free Cash Flow 164.30340.60632.30622.9061.57475.56535.78603.63680.06766.18

Weighted Average Cost Of Capital

Share price $ 34.64
Beta 1.503
Diluted Shares Outstanding 56.30
Cost of Debt
Tax Rate 81.63
After-tax Cost of Debt 0.92%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.253
Total Debt -
Total Equity 1,950.23
Total Capital 1,950.23
Debt Weighting 0.00
Equity Weighting 100.00
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 848.301,091.901,203.801,275.201,348.601,519.371,711.771,928.532,172.742,447.87
Operating Cash Flow 470.70641.70795.50861.10385839.95946.311,066.141,201.151,353.25
Capital Expenditure -306.40-301.10-163.20-238.20-323.43-364.39-410.53-462.52-521.08-587.07
Free Cash Flow 164.30340.60632.30622.9061.57475.56535.78603.63680.06766.18
WACC
PV LFCF 427.47432.90438.40443.97449.60
SUM PV LFCF 2,192.34

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.25
Free cash flow (t + 1) 781.50
Terminal Value 8,448.68
Present Value of Terminal Value 4,957.80

Intrinsic Value

Enterprise Value 7,150.13
Net Debt -
Equity Value 7,150.13
Shares Outstanding 56.30
Equity Value Per Share 127.00