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 14,09514,58915,34116,83818,29219,529.1220,849.9122,260.0323,765.5225,372.83
Revenue (%)
Operating Cash Flow 4,0583,9274,5744,3884,8115,385.535,749.776,138.636,553.806,997.05
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 1,183331,752-9281,164815.99871.18930.109931,060.16

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 14,09514,58915,34116,83818,29219,529.1220,849.9122,260.0323,765.5225,372.83
Operating Cash Flow 4,0583,9274,5744,3884,8115,385.535,749.776,138.636,553.806,997.05
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 1,183331,752-9281,164815.99871.18930.109931,060.16
WACC
PV LFCF 777.28790.49803.92817.57831.46
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