Discounted Cash Flow (DCF) Analysis Levered
TransAlta Corporation (TA.TO)
$12.97
+0.25 (+1.97%)
All numbers are in Millions, Currency in USD
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 | 2,307 | 2,249 | 2,347 | 2,101 | 2,721 | 2,862.98 | 3,012.37 | 3,169.55 | 3,334.94 | 3,508.95 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 626 | 820 | 849 | 702 | 1,001 | 973.24 | 1,024.02 | 1,077.46 | 1,133.68 | 1,192.83 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -389 | -297 | -431 | -500 | -489 | -516.49 | -543.44 | -571.79 | -601.63 | -633.02 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 237 | 523 | 418 | 202 | 512 | 456.75 | 480.59 | 505.66 | 532.05 | 559.81 |
Weighted Average Cost Of Capital
Share price | $ 12.97 |
---|---|
Beta | 1.083 |
Diluted Shares Outstanding | 271 |
Cost of Debt | |
Tax Rate | -41.32 |
After-tax Cost of Debt | 7.56% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 8.631 |
Total Debt | 3,267 |
Total Equity | 3,514.87 |
Total Capital | 6,781.87 |
Debt Weighting | 48.17 |
Equity Weighting | 51.83 |
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 | 2,307 | 2,249 | 2,347 | 2,101 | 2,721 | 2,862.98 | 3,012.37 | 3,169.55 | 3,334.94 | 3,508.95 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 626 | 820 | 849 | 702 | 1,001 | 973.24 | 1,024.02 | 1,077.46 | 1,133.68 | 1,192.83 |
Capital Expenditure | -389 | -297 | -431 | -500 | -489 | -516.49 | -543.44 | -571.79 | -601.63 | -633.02 |
Free Cash Flow | 237 | 523 | 418 | 202 | 512 | 456.75 | 480.59 | 505.66 | 532.05 | 559.81 |
WACC | ||||||||||
PV LFCF | 390.80 | 380.34 | 370.17 | 360.26 | 350.63 | |||||
SUM PV LFCF | 2,002.41 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 8.11 |
Free cash flow (t + 1) | 571.01 |
Terminal Value | 9,345.44 |
Present Value of Terminal Value | 6,328.06 |
Intrinsic Value
Enterprise Value | 8,330.47 |
---|---|
Net Debt | 2,320 |
Equity Value | 6,010.47 |
Shares Outstanding | 271 |
Equity Value Per Share | 22.18 |