Discounted Cash Flow (DCF) Analysis Levered
Plains All American Pipeline, L.P. (PAA)
$13.41
-0.30 (-2.19%)
All numbers are in Millions, Currency in USD
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 | 34,055 | 33,669 | 23,290 | 42,078 | 57,342 | 69,525.06 | 84,296.58 | 102,206.50 | 123,921.61 | 150,250.39 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,608 | 2,504 | 1,514 | 1,996 | 2,408 | 4,246.44 | 5,148.65 | 6,242.55 | 7,568.86 | 9,176.96 |
| 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 | 974 | 1,323 | 776 | 1,660 | 1,953 | 2,429.53 | 2,945.72 | 3,571.58 | 4,330.40 | 5,250.45 |
Weighted Average Cost Of Capital
| Share price | $ 13.41 |
|---|---|
| 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 | 11.529 |
| Total Debt | 7,595 |
| Total Equity | 9,400.41 |
| Total Capital | 16,995.41 |
| Debt Weighting | 44.69 |
| Equity Weighting | 55.31 |
| 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 | 34,055 | 33,669 | 23,290 | 42,078 | 57,342 | 69,525.06 | 84,296.58 | 102,206.50 | 123,921.61 | 150,250.39 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,608 | 2,504 | 1,514 | 1,996 | 2,408 | 4,246.44 | 5,148.65 | 6,242.55 | 7,568.86 | 9,176.96 |
| 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 | 974 | 1,323 | 776 | 1,660 | 1,953 | 2,429.53 | 2,945.72 | 3,571.58 | 4,330.40 | 5,250.45 |
| WACC | ||||||||||
| PV LFCF | 2,247.07 | 2,519.88 | 2,825.80 | 3,168.87 | 3,553.59 | |||||
| SUM PV LFCF | 14,315.20 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.12 |
| Free cash flow (t + 1) | 5,355.46 |
| Terminal Value | 87,507.58 |
| Present Value of Terminal Value | 59,226.42 |
Intrinsic Value
| Enterprise Value | 73,541.62 |
|---|---|
| Net Debt | 7,194 |
| Equity Value | 66,347.62 |
| Shares Outstanding | 701 |
| Equity Value Per Share | 94.65 |