Discounted Cash Flow (DCF) Analysis Unlevered

Brookfield Business Partners L.P. (BBU-UN.TO)

$26.11

+1.06 (+4.23%)

All numbers are in Millions, Currency in USD

Stock DCF: -176.52 | 26.11 | overvalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	37,168	43,032	37,635	46,587	57,545	64,816.26	73,006.30	82,231.22	92,621.78	104,325.27
Revenue (%)
EBITDA	422	765	746	1,238	-2,734	363.19	409.08	460.77	518.99	584.57
EBITDA (%)
EBIT	-326	-1,039	-1,419	-1,045	-5,994	-2,556.52	-2,879.56	-3,243.42	-3,653.25	-4,114.86
EBIT (%)
Depreciation	748	1,804	2,165	2,283	3,260	2,919.71	3,288.64	3,704.18	4,172.24	4,699.43
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	2,214	2,720	4,123	3,988	2,870	4,767.96	5,370.43	6,049.02	6,813.36	7,674.29
Total Cash (%)
Account Receivables	4,835	5,379	4,989	5,634	7,278	8,232.41	9,272.64	10,444.32	11,764.04	13,250.51
Account Receivables (%)
Inventories	1,562	3,490	3,696	4,512	7,712	5,862.01	6,602.72	7,437.03	8,376.75	9,435.22
Inventories (%)
Accounts Payable	1,819	2,919	2,971	3,665	3,947.38	4,446.16	5,007.97	5,640.77	6,353.52	7,156.34
Accounts Payable (%)
Capital Expenditure	-545	-1,205	-1,405	-1,450	-1,748	-1,834.28	-2,066.06	-2,327.12	-2,621.17	-2,952.38
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 26.11
Beta	1.354
Diluted Shares Outstanding	148
Cost of Debt
Tax Rate	-6.49
After-tax Cost of Debt	-5.44%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.083
Total Debt	46,693
Total Equity	3,864.28
Total Capital	50,557.28
Debt Weighting	92.36
Equity Weighting	7.64
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	37,168	43,032	37,635	46,587	57,545	64,816.26	73,006.30	82,231.22	92,621.78	104,325.27
EBITDA	422	765	746	1,238	-2,734	363.19	409.08	460.77	518.99	584.57
EBIT	-326	-1,039	-1,419	-1,045	-5,994	-2,556.52	-2,879.56	-3,243.42	-3,653.25	-4,114.86
Tax Rate	94.31%	93.13%	112.40%	88.87%	-6.49%	76.44%	76.44%	76.44%	76.44%	76.44%
EBIAT	-18.54	-71.37	175.93	-116.31	-6,383.22	-602.23	-678.33	-764.04	-860.58	-969.32
Depreciation	748	1,804	2,165	2,283	3,260	2,919.71	3,288.64	3,704.18	4,172.24	4,699.43
Accounts Receivable	-	-544	390	-645	-1,644	-954.41	-1,040.23	-1,171.67	-1,319.72	-1,486.48
Inventories	-	-1,928	-206	-816	-3,200	1,849.99	-740.71	-834.31	-939.73	-1,058.47
Accounts Payable	-	1,100	52	694	282.38	498.78	561.81	632.80	712.76	802.82
Capital Expenditure	-545	-1,205	-1,405	-1,450	-1,748	-1,834.28	-2,066.06	-2,327.12	-2,621.17	-2,952.38
UFCF	184.46	-844.37	1,171.93	-50.31	-9,432.84	1,877.56	-674.88	-760.16	-856.21	-964.40
WACC
PV UFCF						1,960.89	-736.12	-865.94	-1,018.65	-1,198.29
SUM PV UFCF										-1,858.10

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	-4.25
Free cash flow (t + 1)	-983.68
Terminal Value	15,738.95
Present Value of Terminal Value	19,556.09

Intrinsic Value

Enterprise Value	17,697.98
Net Debt	43,823
Equity Value	-26,125.02
Shares Outstanding	148
Equity Value Per Share	-176.52