Discounted Cash Flow (DCF) Analysis Levered

Rogers Communications Inc. (RCI)

$39.18

-1.34 (-3.31%)
All numbers are in Millions, Currency in USD
Stock DCF: 113.17 | 39.18 | 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 14,14315,09615,07313,91614,65514,809.6314,965.8815,123.7915,283.3615,444.62
Revenue (%)
Operating Cash Flow 3,9384,2884,5264,3214,1614,316.114,361.654,407.674,454.184,501.17
Operating Cash Flow (%)
Capital Expenditure -2,495-2,844-2,867-2,369-2,842-2,722.53-2,751.26-2,780.29-2,809.62-2,839.27
Capital Expenditure (%)
Free Cash Flow 1,4431,4441,6591,9521,3191,593.581,610.391,627.391,644.561,661.91

Weighted Average Cost Of Capital

Share price $ 39.18
Beta 0.362
Diluted Shares Outstanding 505
Cost of Debt
Tax Rate 26.75
After-tax Cost of Debt 2.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.466
Total Debt 22,845
Total Equity 19,785.90
Total Capital 42,630.90
Debt Weighting 53.59
Equity Weighting 46.41
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 14,14315,09615,07313,91614,65514,809.6314,965.8815,123.7915,283.3615,444.62
Operating Cash Flow 3,9384,2884,5264,3214,1614,316.114,361.654,407.674,454.184,501.17
Capital Expenditure -2,495-2,844-2,867-2,369-2,842-2,722.53-2,751.26-2,780.29-2,809.62-2,839.27
Free Cash Flow 1,4431,4441,6591,9521,3191,593.581,610.391,627.391,644.561,661.91
WACC
PV LFCF 1,533.171,490.621,449.251,409.021,369.91
SUM PV LFCF 7,251.97

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.94
Free cash flow (t + 1) 1,695.15
Terminal Value 87,378.65
Present Value of Terminal Value 72,026.41

Intrinsic Value

Enterprise Value 79,278.38
Net Debt 22,130
Equity Value 57,148.38
Shares Outstanding 505
Equity Value Per Share 113.17