Discounted Cash Flow (DCF) Analysis Levered
Imperial Oil Limited (IMO.TO)
$72.69
+0.63 (+0.87%)
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 | 27,452 | 33,297 | 32,194 | 20,548 | 35,580 | 40,468.71 | 46,029.13 | 52,353.56 | 59,546.96 | 67,728.74 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,763 | 3,922 | 4,429 | 798 | 5,476 | 4,441.45 | 5,051.71 | 5,745.82 | 6,535.30 | 7,433.25 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -993 | -1,491 | -1,636 | -868 | -1,108 | -1,660.44 | -1,888.59 | -2,148.08 | -2,443.23 | -2,778.93 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,770 | 2,431 | 2,793 | -70 | 4,368 | 2,781.01 | 3,163.12 | 3,597.74 | 4,092.07 | 4,654.32 |
Weighted Average Cost Of Capital
| Share price | $ 72.69 |
|---|---|
| Beta | 1.940 |
| Diluted Shares Outstanding | 713.20 |
| Cost of Debt | |
| Tax Rate | 24.49 |
| After-tax Cost of Debt | 0.76% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 12.676 |
| Total Debt | 5,323 |
| Total Equity | 51,842.51 |
| Total Capital | 57,165.51 |
| Debt Weighting | 9.31 |
| Equity Weighting | 90.69 |
| 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 | 27,452 | 33,297 | 32,194 | 20,548 | 35,580 | 40,468.71 | 46,029.13 | 52,353.56 | 59,546.96 | 67,728.74 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,763 | 3,922 | 4,429 | 798 | 5,476 | 4,441.45 | 5,051.71 | 5,745.82 | 6,535.30 | 7,433.25 |
| Capital Expenditure | -993 | -1,491 | -1,636 | -868 | -1,108 | -1,660.44 | -1,888.59 | -2,148.08 | -2,443.23 | -2,778.93 |
| Free Cash Flow | 1,770 | 2,431 | 2,793 | -70 | 4,368 | 2,781.01 | 3,163.12 | 3,597.74 | 4,092.07 | 4,654.32 |
| WACC | ||||||||||
| PV LFCF | 2,492.61 | 2,541.10 | 2,590.52 | 2,640.91 | 2,692.27 | |||||
| SUM PV LFCF | 12,957.41 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 11.57 |
| Free cash flow (t + 1) | 4,747.41 |
| Terminal Value | 49,607.16 |
| Present Value of Terminal Value | 28,695.07 |
Intrinsic Value
| Enterprise Value | 41,652.47 |
|---|---|
| Net Debt | 3,170 |
| Equity Value | 38,482.47 |
| Shares Outstanding | 713.20 |
| Equity Value Per Share | 53.96 |