Discounted Cash Flow (DCF) Analysis Levered

TELUS Corporation (T.TO)

$25.72

-0.01 (-0.04%)

All numbers are in Millions, Currency in USD

Stock DCF: 5.43 | 25.72 | overvalue

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	14,095	14,589	15,341	16,838	18,292	19,529.12	20,849.91	22,260.03	23,765.52	25,372.83
Revenue (%)
Operating Cash Flow	4,058	3,927	4,574	4,388	4,811	5,385.53	5,749.77	6,138.63	6,553.80	6,997.05
Operating Cash Flow (%)
Capital Expenditure	-2,875	-3,894	-2,822	-5,316	-3,647	-4,569.54	-4,878.58	-5,208.53	-5,560.80	-5,936.88
Capital Expenditure (%)
Free Cash Flow	1,183	33	1,752	-928	1,164	815.99	871.18	930.10	993	1,060.16

Weighted Average Cost Of Capital

Share price	$ 25.72
Beta	0.668
Diluted Shares Outstanding	1,351
Cost of Debt
Tax Rate	30.45
After-tax Cost of Debt	2.40%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.847
Total Debt	25,141
Total Equity	34,747.72
Total Capital	59,888.72
Debt Weighting	41.98
Equity Weighting	58.02
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	14,095	14,589	15,341	16,838	18,292	19,529.12	20,849.91	22,260.03	23,765.52	25,372.83
Operating Cash Flow	4,058	3,927	4,574	4,388	4,811	5,385.53	5,749.77	6,138.63	6,553.80	6,997.05
Capital Expenditure	-2,875	-3,894	-2,822	-5,316	-3,647	-4,569.54	-4,878.58	-5,208.53	-5,560.80	-5,936.88
Free Cash Flow	1,183	33	1,752	-928	1,164	815.99	871.18	930.10	993	1,060.16
WACC
PV LFCF						777.28	790.49	803.92	817.57	831.46
SUM PV LFCF										4,020.72

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.98
Free cash flow (t + 1)	1,081.37
Terminal Value	36,287.48
Present Value of Terminal Value	28,459.29

Intrinsic Value

Enterprise Value	32,480
Net Debt	25,141
Equity Value	7,339
Shares Outstanding	1,351
Equity Value Per Share	5.43