Discounted Cash Flow (DCF) Analysis Levered

Teck Resources Limited (TECK)

$29.78

-0.79 (-2.58%)
All numbers are in Millions, Currency in USD
Stock DCF: 15.95 | 29.78 | 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 12,04812,56411,9348,94813,48114,320.4315,212.1216,159.3417,165.5418,234.40
Revenue (%)
Operating Cash Flow 5,0664,4383,4841,5634,7384,559.024,842.905,144.455,464.785,805.06
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 2,7671,82516-2,06525421.99448.27476.18505.83537.32

Weighted Average Cost Of Capital

Share price $ 29.78
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 7.904
Total Debt 9,331
Total Equity 15,914.43
Total Capital 25,245.43
Debt Weighting 36.96
Equity Weighting 63.04
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 12,04812,56411,9348,94813,48114,320.4315,212.1216,159.3417,165.5418,234.40
Operating Cash Flow 5,0664,4383,4841,5634,7384,559.024,842.905,144.455,464.785,805.06
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 2,7671,82516-2,06525421.99448.27476.18505.83537.32
WACC
PV LFCF 401.93406.67411.46416.30421.21
SUM PV LFCF 2,057.57

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.99
Free cash flow (t + 1) 548.07
Terminal Value 18,330.15
Present Value of Terminal Value 14,368.99

Intrinsic Value

Enterprise Value 16,426.57
Net Debt 7,904
Equity Value 8,522.57
Shares Outstanding 534.40
Equity Value Per Share 15.95