Discounted Cash Flow (DCF) Analysis Levered

Hess Midstream LP (HESM)

$27.43

+0.46 (+1.71%)
All numbers are in Millions, Currency in USD
Stock DCF: 39,418.71 | 27.43 | undervalue

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 565.80662.40848.301,091.901,203.801,456.911,763.232,133.962,582.633,125.65
Revenue (%)
Operating Cash Flow 399.90493.60470.70641.70795.50948.551,147.981,389.351,681.472,035.01
Operating Cash Flow (%)
Capital Expenditure -136.40-235.60-306.40-301.10-163.20-398.98-482.87-584.39-707.27-855.97
Capital Expenditure (%)
Free Cash Flow 263.50258164.30340.60632.30549.57665.12804.96974.211,179.04

Weighted Average Cost Of Capital

Share price $ 27.43
Beta 1.656
Diluted Shares Outstanding 18.32
Cost of Debt
Tax Rate 92.66
After-tax Cost of Debt 0.30%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.587
Total Debt 2,563.50
Total Equity 502.53
Total Capital 3,066.03
Debt Weighting 83.61
Equity Weighting 16.39
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 565.80662.40848.301,091.901,203.801,456.911,763.232,133.962,582.633,125.65
Operating Cash Flow 399.90493.60470.70641.70795.50948.551,147.981,389.351,681.472,035.01
Capital Expenditure -136.40-235.60-306.40-301.10-163.20-398.98-482.87-584.39-707.27-855.97
Free Cash Flow 263.50258164.30340.60632.30549.57665.12804.96974.211,179.04
WACC
PV LFCF 538637.41755.19894.741,060.07
SUM PV LFCF 3,885.42

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 2.15
Free cash flow (t + 1) 1,202.62
Terminal Value 801,746.83
Present Value of Terminal Value 720,850.82

Intrinsic Value

Enterprise Value 724,736.24
Net Debt 2,561.30
Equity Value 722,174.94
Shares Outstanding 18.32
Equity Value Per Share 39,418.71