Discounted Cash Flow (DCF) Analysis Levered

Sunoco LP (SUN)

$47.31

+0.84 (+1.81%)

All numbers are in Millions, Currency in USD

Stock DCF: 131.37 | 47.31 | 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	16,994	16,596	10,710	17,596	25,729	30,405.72	35,932.52	42,463.93	50,182.53	59,304.14
Revenue (%)
Operating Cash Flow	-37	435	502	543	561	751.44	888.03	1,049.45	1,240.21	1,465.64
Operating Cash Flow (%)
Capital Expenditure	-105	-148	-124	-174	-186	-266.31	-314.71	-371.92	-439.52	-519.41
Capital Expenditure (%)
Free Cash Flow	-142	287	378	369	375	485.14	573.32	677.53	800.68	946.22

Weighted Average Cost Of Capital

Share price	$ 47.31
Beta	1.297
Diluted Shares Outstanding	84.80
Cost of Debt
Tax Rate	5.19
After-tax Cost of Debt	4.19%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.748
Total Debt	4,120
Total Equity	4,012.06
Total Capital	8,132.06
Debt Weighting	50.66
Equity Weighting	49.34
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	16,994	16,596	10,710	17,596	25,729	30,405.72	35,932.52	42,463.93	50,182.53	59,304.14
Operating Cash Flow	-37	435	502	543	561	751.44	888.03	1,049.45	1,240.21	1,465.64
Capital Expenditure	-105	-148	-124	-174	-186	-266.31	-314.71	-371.92	-439.52	-519.41
Free Cash Flow	-142	287	378	369	375	485.14	573.32	677.53	800.68	946.22
WACC
PV LFCF						391.28	430.42	473.48	520.84	572.95
SUM PV LFCF										2,757.16

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.43
Free cash flow (t + 1)	965.15
Terminal Value	17,774.37
Present Value of Terminal Value	12,421.28

Intrinsic Value

Enterprise Value	15,178.44
Net Debt	4,038
Equity Value	11,140.44
Shares Outstanding	84.80
Equity Value Per Share	131.37