Discounted Cash Flow (DCF) Analysis Levered

Imperial Oil Limited (IMO)

$47.22

-0.51 (-1.07%)
All numbers are in Millions, Currency in USD
Stock DCF: 191.56 | 47.22 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 33,29732,19420,54835,58059,67074,792.6293,747.89117,507.14147,287.87184,616.16
Revenue (%)
Operating Cash Flow 3,9224,4297985,47610,4829,330.6711,695.4114,659.4718,374.7323,031.58
Operating Cash Flow (%)
Capital Expenditure -1,491-1,636-868-1,108-1,526-2,910.23-3,647.79-4,572.28-5,731.07-7,183.54
Capital Expenditure (%)
Free Cash Flow 2,4312,793-704,3688,9566,420.448,047.6210,087.1912,643.6615,848.04

Weighted Average Cost Of Capital

Share price $ 47.22
Beta 1.909
Diluted Shares Outstanding 735.30
Cost of Debt
Tax Rate 22.61
After-tax Cost of Debt 3.87%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.512
Total Debt 7,622
Total Equity 34,720.87
Total Capital 42,342.87
Debt Weighting 18.00
Equity Weighting 82.00
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 33,29732,19420,54835,58059,67074,792.6293,747.89117,507.14147,287.87184,616.16
Operating Cash Flow 3,9224,4297985,47610,4829,330.6711,695.4114,659.4718,374.7323,031.58
Capital Expenditure -1,491-1,636-868-1,108-1,526-2,910.23-3,647.79-4,572.28-5,731.07-7,183.54
Free Cash Flow 2,4312,793-704,3688,9566,420.448,047.6210,087.1912,643.6615,848.04
WACC
PV LFCF 5,786.266,536.347,383.648,340.799,422.01
SUM PV LFCF 37,469.04

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.96
Free cash flow (t + 1) 16,165
Terminal Value 180,412.98
Present Value of Terminal Value 107,259.44

Intrinsic Value

Enterprise Value 144,728.48
Net Debt 3,873
Equity Value 140,855.48
Shares Outstanding 735.30
Equity Value Per Share 191.56