Discounted Cash Flow (DCF) Analysis Levered

Rogers Communications Inc. (RCI)

$45.55

+0.35 (+0.77%)
All numbers are in Millions, Currency in USD
Stock DCF: 56.16 | 45.55 | 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 15,09615,07313,91614,65515,39615,493.7015,592.0315,690.9715,790.5515,890.75
Revenue (%)
Operating Cash Flow 4,2884,5264,3214,1614,4934,556.964,585.884,614.994,644.274,673.74
Operating Cash Flow (%)
Capital Expenditure -2,844-2,867-2,369-2,842-3,122-2,930-2,948.59-2,967.30-2,986.13-3,005.08
Capital Expenditure (%)
Free Cash Flow 1,4441,6591,9521,3191,3711,626.971,637.291,647.681,658.141,668.66

Weighted Average Cost Of Capital

Share price $ 45.55
Beta 0.521
Diluted Shares Outstanding 506
Cost of Debt
Tax Rate 26.61
After-tax Cost of Debt 3.02%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.569
Total Debt 36,746
Total Equity 23,048.30
Total Capital 59,794.30
Debt Weighting 61.45
Equity Weighting 38.55
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 15,09615,07313,91614,65515,39615,493.7015,592.0315,690.9715,790.5515,890.75
Operating Cash Flow 4,2884,5264,3214,1614,4934,556.964,585.884,614.994,644.274,673.74
Capital Expenditure -2,844-2,867-2,369-2,842-3,122-2,930-2,948.59-2,967.30-2,986.13-3,005.08
Free Cash Flow 1,4441,6591,9521,3191,3711,626.971,637.291,647.681,658.141,668.66
WACC
PV LFCF 1,4931,439.291,387.521,337.601,289.48
SUM PV LFCF 7,251.86

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.39
Free cash flow (t + 1) 1,702.03
Terminal Value 71,214.83
Present Value of Terminal Value 57,448.14

Intrinsic Value

Enterprise Value 64,700
Net Debt 36,283
Equity Value 28,417
Shares Outstanding 506
Equity Value Per Share 56.16