Discounted Cash Flow (DCF) Analysis Levered

TransAlta Renewables Inc. (RNW.TO)

$12.48

+0.14 (+1.13%)
Financial Summary
Financial Statements
Quarter Financials
Chart
Financial Ratios
Profile
Historical Data
DCFDCF Levered
All numbers are in Millions, Currency in USD
Stock DCF: 23.35 | 12.48 | 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 462446436470560589.74621.06654.04688.77725.35
Revenue (%)
Operating Cash Flow 385331267336257396.50417.56439.73463.09487.68
Operating Cash Flow (%)
Capital Expenditure -63-31-28-81-118-77.04-81.13-85.44-89.97-94.75
Capital Expenditure (%)
Free Cash Flow 322300239255139319.47336.43354.30373.11392.93

Weighted Average Cost Of Capital

Share price $ 12.48
Beta 0.739
Diluted Shares Outstanding 267
Cost of Debt
Tax Rate 18.68
After-tax Cost of Debt 5.15%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.643
Total Debt 790
Total Equity 3,332.16
Total Capital 4,122.16
Debt Weighting 19.16
Equity Weighting 80.84
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 462446436470560589.74621.06654.04688.77725.35
Operating Cash Flow 385331267336257396.50417.56439.73463.09487.68
Capital Expenditure -63-31-28-81-118-77.04-81.13-85.44-89.97-94.75
Free Cash Flow 322300239255139319.47336.43354.30373.11392.93
WACC
PV LFCF 298.12292.98287.92282.95278.07
SUM PV LFCF 1,440.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.16
Free cash flow (t + 1) 400.79
Terminal Value 7,767.16
Present Value of Terminal Value 5,496.66

Intrinsic Value

Enterprise Value 6,936.69
Net Debt 701
Equity Value 6,235.69
Shares Outstanding 267
Equity Value Per Share 23.35