Discounted Cash Flow (DCF) Analysis Levered

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

$10.8

-0.02 (-0.18%)
All numbers are in Millions, Currency in USD
Stock DCF: 78.19 | 10.8 | 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 26,22334,05533,66923,29042,04350,286.2060,145.6271,938.1386,042.76102,912.82
Revenue (%)
Operating Cash Flow 2,4992,6082,5041,5141,9963,607.864,315.245,161.316,173.277,383.64
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 1,4759741,3237761,6601,980.732,369.092,833.583,389.154,053.65

Weighted Average Cost Of Capital

Share price $ 10.8
Beta 1.798
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 11.272
Total Debt 8,737
Total Equity 7,732.80
Total Capital 16,469.80
Debt Weighting 53.05
Equity Weighting 46.95
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 26,22334,05533,66923,29042,04350,286.2060,145.6271,938.1386,042.76102,912.82
Operating Cash Flow 2,4992,6082,5041,5141,9963,607.864,315.245,161.316,173.277,383.64
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 1,4759741,3237761,6601,980.732,369.092,833.583,389.154,053.65
WACC
PV LFCF 1,714.951,908.622,124.162,364.042,631.01
SUM PV LFCF 11,545.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.47
Free cash flow (t + 1) 4,134.72
Terminal Value 75,589.10
Present Value of Terminal Value 52,725.77

Intrinsic Value

Enterprise Value 64,271.03
Net Debt 8,288
Equity Value 55,983.03
Shares Outstanding 716
Equity Value Per Share 78.19