Discounted Cash Flow (DCF) Analysis Levered

Teck Resources Limited (TECK)

$31.69

+0.68 (+2.19%)

All numbers are in Millions, Currency in USD

Stock DCF: 13.38 | 31.69 | overvalue

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	12,048	12,564	11,934	8,948	13,481	14,320.43	15,212.12	16,159.34	17,165.54	18,234.40
Revenue (%)
Operating Cash Flow	5,066	4,438	3,484	1,563	4,738	4,559.02	4,842.90	5,144.45	5,464.78	5,805.06
Operating Cash Flow (%)
Capital Expenditure	-2,299	-2,613	-3,468	-3,628	-4,713	-4,137.03	-4,394.63	-4,668.27	-4,958.95	-5,267.74
Capital Expenditure (%)
Free Cash Flow	2,767	1,825	16	-2,065	25	421.99	448.27	476.18	505.83	537.32

Weighted Average Cost Of Capital

Share price	$ 31.69
Beta	1.063
Diluted Shares Outstanding	534.40
Cost of Debt
Tax Rate	36.72
After-tax Cost of Debt	0.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.140
Total Debt	9,331
Total Equity	16,935.14
Total Capital	26,266.14
Debt Weighting	35.52
Equity Weighting	64.48
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	12,048	12,564	11,934	8,948	13,481	14,320.43	15,212.12	16,159.34	17,165.54	18,234.40
Operating Cash Flow	5,066	4,438	3,484	1,563	4,738	4,559.02	4,842.90	5,144.45	5,464.78	5,805.06
Capital Expenditure	-2,299	-2,613	-3,468	-3,628	-4,713	-4,137.03	-4,394.63	-4,668.27	-4,958.95	-5,267.74
Free Cash Flow	2,767	1,825	16	-2,065	25	421.99	448.27	476.18	505.83	537.32
WACC
PV LFCF						400.90	404.58	408.30	412.05	415.83
SUM PV LFCF										2,041.67

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.26
Free cash flow (t + 1)	548.07
Terminal Value	16,812.01
Present Value of Terminal Value	13,010.76

Intrinsic Value

Enterprise Value	15,052.43
Net Debt	7,904
Equity Value	7,148.43
Shares Outstanding	534.40
Equity Value Per Share	13.38