Discounted Cash Flow (DCF) Analysis Levered

Sunoco LP (SUN)

$41.97

-0.87 (-2.03%)
All numbers are in Millions, Currency in USD
Stock DCF: 117.15 | 41.97 | 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 11,72316,99416,59610,71017,59620,739.0724,443.5628,809.7633,955.8840,021.21
Revenue (%)
Operating Cash Flow 439-37435502543577.43680.57802.14945.421,114.29
Operating Cash Flow (%)
Capital Expenditure -142-105-148-124-174-201.90-237.96-280.47-330.57-389.61
Capital Expenditure (%)
Free Cash Flow 297-142287378369375.53442.61521.67614.85724.68

Weighted Average Cost Of Capital

Share price $ 41.97
Beta 1.408
Diluted Shares Outstanding 84.44
Cost of Debt
Tax Rate 19.49
After-tax Cost of Debt 3.31%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.247
Total Debt 3,795
Total Equity 3,543.87
Total Capital 7,338.87
Debt Weighting 51.71
Equity Weighting 48.29
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 11,72316,99416,59610,71017,59620,739.0724,443.5628,809.7633,955.8840,021.21
Operating Cash Flow 439-37435502543577.43680.57802.14945.421,114.29
Capital Expenditure -142-105-148-124-174-201.90-237.96-280.47-330.57-389.61
Free Cash Flow 297-142287378369375.53442.61521.67614.85724.68
WACC
PV LFCF 352.08389.06429.92475.08524.97
SUM PV LFCF 2,171.12

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.66
Free cash flow (t + 1) 739.17
Terminal Value 15,862.09
Present Value of Terminal Value 11,490.86

Intrinsic Value

Enterprise Value 13,661.98
Net Debt 3,770
Equity Value 9,891.98
Shares Outstanding 84.44
Equity Value Per Share 117.15