Discounted Cash Flow (DCF) Analysis Levered

Plains All American Pipeline, L.P. (PAA)

$13.6

+0.12 (+0.89%)
All numbers are in Millions, Currency in USD
Stock DCF: 93.92 | 13.6 | 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 34,05533,66923,29042,07857,34269,525.0684,296.58102,206.50123,921.61150,250.39
Revenue (%)
Operating Cash Flow 2,6082,5041,5141,9962,4084,246.445,148.656,242.557,568.869,176.96
Operating Cash Flow (%)
Capital Expenditure -1,634-1,181-738-336-455-1,816.90-2,202.93-2,670.97-3,238.45-3,926.51
Capital Expenditure (%)
Free Cash Flow 9741,3237761,6601,9532,429.532,945.723,571.584,330.405,250.45

Weighted Average Cost Of Capital

Share price $ 13.6
Beta 1.659
Diluted Shares Outstanding 701
Cost of Debt
Tax Rate 26.82
After-tax Cost of Debt 3.90%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.549
Total Debt 7,595
Total Equity 9,533.60
Total Capital 17,128.60
Debt Weighting 44.34
Equity Weighting 55.66
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 34,05533,66923,29042,07857,34269,525.0684,296.58102,206.50123,921.61150,250.39
Operating Cash Flow 2,6082,5041,5141,9962,4084,246.445,148.656,242.557,568.869,176.96
Capital Expenditure -1,634-1,181-738-336-455-1,816.90-2,202.93-2,670.97-3,238.45-3,926.51
Free Cash Flow 9741,3237761,6601,9532,429.532,945.723,571.584,330.405,250.45
WACC
PV LFCF 1,517.481,701.081,906.892,137.612,396.24
SUM PV LFCF 14,298.12

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.16
Free cash flow (t + 1) 5,355.46
Terminal Value 86,939.35
Present Value of Terminal Value 58,733.11

Intrinsic Value

Enterprise Value 73,031.23
Net Debt 7,194
Equity Value 65,837.23
Shares Outstanding 701
Equity Value Per Share 93.92