Discounted Cash Flow (DCF) Analysis Levered

Shell Midstream Partners, L.P. (SHLX)

$13.82

-0.13 (-0.93%)
All numbers are in Millions, Currency in USD
Stock DCF: 22.66 | 13.82 | 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 470.10524.70503481556581.99609.19637.67667.48698.68
Revenue (%)
Operating Cash Flow 432.40508.40597650612643.41673.49704.97737.92772.42
Operating Cash Flow (%)
Capital Expenditure -58-49.20-38-27-11-42.91-44.91-47.01-49.21-51.51
Capital Expenditure (%)
Free Cash Flow 374.40459.20559623601600.51628.58657.96688.71720.91

Weighted Average Cost Of Capital

Share price $ 13.82
Beta 1.367
Diluted Shares Outstanding 444.10
Cost of Debt
Tax Rate 2.11
After-tax Cost of Debt 3.06%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.181
Total Debt 2,719
Total Equity 6,137.46
Total Capital 8,856.46
Debt Weighting 30.70
Equity Weighting 69.30
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 470.10524.70503481556581.99609.19637.67667.48698.68
Operating Cash Flow 432.40508.40597650612643.41673.49704.97737.92772.42
Capital Expenditure -58-49.20-38-27-11-42.91-44.91-47.01-49.21-51.51
Free Cash Flow 374.40459.20559623601600.51628.58657.96688.71720.91
WACC
PV LFCF 521.58508.81496.36484.22472.37
SUM PV LFCF 2,664.62

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.30
Free cash flow (t + 1) 735.33
Terminal Value 13,874.06
Present Value of Terminal Value 9,754.50

Intrinsic Value

Enterprise Value 12,419.12
Net Debt 2,358
Equity Value 10,061.12
Shares Outstanding 444.10
Equity Value Per Share 22.66