Discounted Cash Flow (DCF) Analysis Levered
Teck Resources Limited (TECK)
$29.78
-0.79 (-2.58%)
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 | 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 | $ 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 | 12,048 | 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 | 401.93 | 406.67 | 411.46 | 416.30 | 421.21 | |||||
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 |