Discounted Cash Flow (DCF) Analysis Levered
Plains All American Pipeline, L.P. (PAA)
$9.92
+0.33 (+3.44%)
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 | 26,223 | 34,055 | 33,669 | 23,290 | 42,043 | 50,286.20 | 60,145.62 | 71,938.13 | 86,042.76 | 102,912.82 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,499 | 2,608 | 2,504 | 1,514 | 1,996 | 3,607.86 | 4,315.24 | 5,161.31 | 6,173.27 | 7,383.64 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -1,024 | -1,634 | -1,181 | -738 | -336 | -1,627.13 | -1,946.15 | -2,327.73 | -2,784.12 | -3,329.99 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,475 | 974 | 1,323 | 776 | 1,660 | 1,980.73 | 2,369.09 | 2,833.58 | 3,389.15 | 4,053.65 |
Weighted Average Cost Of Capital
| Share price | $ 9.92 |
|---|---|
| Beta | 1.789 |
| Diluted Shares Outstanding | 716 |
| Cost of Debt | |
| Tax Rate | 17.75 |
| After-tax Cost of Debt | 4.11% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 11.567 |
| Total Debt | 8,737 |
| Total Equity | 7,102.72 |
| Total Capital | 15,839.72 |
| Debt Weighting | 55.16 |
| Equity Weighting | 44.84 |
| 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 | 26,223 | 34,055 | 33,669 | 23,290 | 42,043 | 50,286.20 | 60,145.62 | 71,938.13 | 86,042.76 | 102,912.82 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,499 | 2,608 | 2,504 | 1,514 | 1,996 | 3,607.86 | 4,315.24 | 5,161.31 | 6,173.27 | 7,383.64 |
| Capital Expenditure | -1,024 | -1,634 | -1,181 | -738 | -336 | -1,627.13 | -1,946.15 | -2,327.73 | -2,784.12 | -3,329.99 |
| Free Cash Flow | 1,475 | 974 | 1,323 | 776 | 1,660 | 1,980.73 | 2,369.09 | 2,833.58 | 3,389.15 | 4,053.65 |
| WACC | ||||||||||
| PV LFCF | 1,843.23 | 2,051.57 | 2,283.47 | 2,541.58 | 2,828.86 | |||||
| SUM PV LFCF | 11,548.72 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.46 |
| Free cash flow (t + 1) | 4,134.72 |
| Terminal Value | 75,727.54 |
| Present Value of Terminal Value | 52,846.92 |
Intrinsic Value
| Enterprise Value | 64,395.63 |
|---|---|
| Net Debt | 8,288 |
| Equity Value | 56,107.63 |
| Shares Outstanding | 716 |
| Equity Value Per Share | 78.36 |