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
Stock DCF: 53.96 | 72.69 | 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 27,45233,29732,19420,54835,58040,468.7146,029.1352,353.5659,546.9667,728.74
Revenue (%)
Operating Cash Flow 2,7633,9224,4297985,4764,441.455,051.715,745.826,535.307,433.25
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 1,7702,4312,793-704,3682,781.013,163.123,597.744,092.074,654.32

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 27,45233,29732,19420,54835,58040,468.7146,029.1352,353.5659,546.9667,728.74
Operating Cash Flow 2,7633,9224,4297985,4764,441.455,051.715,745.826,535.307,433.25
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 1,7702,4312,793-704,3682,781.013,163.123,597.744,092.074,654.32
WACC
PV LFCF 2,492.612,541.102,590.522,640.912,692.27
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