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	11,723	16,994	16,596	10,710	17,596	20,739.07	24,443.56	28,809.76	33,955.88	40,021.21
Revenue (%)
Operating Cash Flow	439	-37	435	502	543	577.43	680.57	802.14	945.42	1,114.29
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	-142	287	378	369	375.53	442.61	521.67	614.85	724.68

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	11,723	16,994	16,596	10,710	17,596	20,739.07	24,443.56	28,809.76	33,955.88	40,021.21
Operating Cash Flow	439	-37	435	502	543	577.43	680.57	802.14	945.42	1,114.29
Capital Expenditure	-142	-105	-148	-124	-174	-201.90	-237.96	-280.47	-330.57	-389.61
Free Cash Flow	297	-142	287	378	369	375.53	442.61	521.67	614.85	724.68
WACC
PV LFCF						352.08	389.06	429.92	475.08	524.97
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