Discounted Cash Flow (DCF) Analysis Levered

NextEra Energy Partners, LP (NEP)

$74.18

-1.52 (-2.01%)
All numbers are in Millions, Currency in USD
Stock DCF: 166.84 | 74.18 | 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 8077718559179821,0331,086.651,143.081,202.451,264.90
Revenue (%)
Operating Cash Flow 413362346665677578.60608.65640.26673.51708.49
Operating Cash Flow (%)
Capital Expenditure -349-25-93-334-113-217.54-228.84-240.73-253.23-266.38
Capital Expenditure (%)
Free Cash Flow 64337253331564361.06379.81399.53420.28442.11

Weighted Average Cost Of Capital

Share price $ 74.18
Beta 0.857
Diluted Shares Outstanding 76.60
Cost of Debt
Tax Rate 70.97
After-tax Cost of Debt 0.26%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.011
Total Debt 5,327
Total Equity 5,682.19
Total Capital 11,009.19
Debt Weighting 48.39
Equity Weighting 51.61
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 8077718559179821,0331,086.651,143.081,202.451,264.90
Operating Cash Flow 413362346665677578.60608.65640.26673.51708.49
Capital Expenditure -349-25-93-334-113-217.54-228.84-240.73-253.23-266.38
Free Cash Flow 64337253331564361.06379.81399.53420.28442.11
WACC
PV LFCF 318.58321.43324.31327.21330.14
SUM PV LFCF 1,762.80

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.26
Free cash flow (t + 1) 450.95
Terminal Value 19,953.53
Present Value of Terminal Value 16,196.87

Intrinsic Value

Enterprise Value 17,959.67
Net Debt 5,180
Equity Value 12,779.67
Shares Outstanding 76.60
Equity Value Per Share 166.84