Discounted Cash Flow (DCF) Analysis Levered

Kimbell Royalty Partners, LP (KRP)

$17.83

+0.16 (+0.91%)
All numbers are in Millions, Currency in USD
Stock DCF: 402.93 | 17.83 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 70.26108.2392.93178.41256.84369.75532.29766.291,103.171,588.13
Revenue (%)
Operating Cash Flow 33.2080.7062.2591.44154.14221.90319.46459.89662.07953.12
Operating Cash Flow (%)
Capital Expenditure -211.50-12.72-88.60-56.071,530115.47166.24239.32344.53495.98
Capital Expenditure (%)
Free Cash Flow -178.3067.98-26.3535.371,684.14337.38485.69699.211,006.591,449.11

Weighted Average Cost Of Capital

Share price $ 17.83
Beta 1.570
Diluted Shares Outstanding 34.53
Cost of Debt
Tax Rate 20.16
After-tax Cost of Debt 3.99%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.195
Total Debt 0.22
Total Equity 615.68
Total Capital 615.90
Debt Weighting 0.04
Equity Weighting 99.96
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 70.26108.2392.93178.41256.84369.75532.29766.291,103.171,588.13
Operating Cash Flow 33.2080.7062.2591.44154.14221.90319.46459.89662.07953.12
Capital Expenditure -211.50-12.72-88.60-56.071,530115.47166.24239.32344.53495.98
Free Cash Flow -178.3067.98-26.3535.371,684.14337.38485.69699.211,006.591,449.11
WACC
PV LFCF 1,684.14306.18400.02522.62682.79892.05
SUM PV LFCF 2,803.65

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.19
Free cash flow (t + 1) 1,478.09
Terminal Value 18,047.48
Present Value of Terminal Value 11,109.78

Intrinsic Value

Enterprise Value 13,913.43
Net Debt 0.21
Equity Value 13,913.23
Shares Outstanding 34.53
Equity Value Per Share 402.93