Discounted Cash Flow (DCF) Analysis Levered

TransAlta Renewables Inc. (RNW.TO)

$15.36

-0.35 (-2.23%)
All numbers are in Millions, Currency in USD
Stock DCF: 20.83 | 15.36 | 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 459462446436470473.23476.48479.75483.04486.36
Revenue (%)
Operating Cash Flow 290385331267336334.53336.83339.14341.47343.81
Operating Cash Flow (%)
Capital Expenditure -38-63-31-28-81-49.71-50.05-50.39-50.74-51.09
Capital Expenditure (%)
Free Cash Flow 252322300239255284.82286.78288.75290.73292.72

Weighted Average Cost Of Capital

Share price $ 15.36
Beta 0.637
Diluted Shares Outstanding 266
Cost of Debt
Tax Rate 6.67
After-tax Cost of Debt 3.99%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.886
Total Debt 981
Total Equity 4,085.76
Total Capital 5,066.76
Debt Weighting 19.36
Equity Weighting 80.64
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 459462446436470473.23476.48479.75483.04486.36
Operating Cash Flow 290385331267336334.53336.83339.14341.47343.81
Capital Expenditure -38-63-31-28-81-49.71-50.05-50.39-50.74-51.09
Free Cash Flow 252322300239255284.82286.78288.75290.73292.72
WACC
PV LFCF 267.87253.65240.19227.44215.37
SUM PV LFCF 1,204.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.33
Free cash flow (t + 1) 298.58
Terminal Value 6,895.59
Present Value of Terminal Value 5,073.32

Intrinsic Value

Enterprise Value 6,277.83
Net Debt 737
Equity Value 5,540.83
Shares Outstanding 266
Equity Value Per Share 20.83