Discounted Cash Flow (DCF) Analysis Unlevered

BCE Inc. (BCE.TO)

$61.34

+0.12 (+0.20%)

All numbers are in Millions, Currency in USD

Stock DCF: 88.26 | 61.34 | undervalue

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	23,468	23,964	22,883	23,449	24,174	24,365.45	24,558.41	24,752.91	24,948.94	25,146.53
Revenue (%)
EBITDA	9,007	9,917	8,986	9,595	9,704	9,750.71	9,827.94	9,905.77	9,984.22	10,063.29
EBITDA (%)
EBIT	4,993	5,519	4,582	4,986	4,981	5,175.11	5,216.09	5,257.40	5,299.04	5,341.01
EBIT (%)
Depreciation	4,014	4,398	4,404	4,609	4,723	4,575.60	4,611.84	4,648.37	4,685.18	4,722.28
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	425	145	224	207	149	238.49	240.38	242.29	244.20	246.14
Total Cash (%)
Account Receivables	3,993	4,149	4,215	4,363	4,574	4,399.20	4,434.04	4,469.16	4,504.55	4,540.23
Account Receivables (%)
Inventories	432	427	439	482	656	502.43	506.41	510.42	514.46	518.54
Inventories (%)
Accounts Payable	2,535	2,604	2,595	2,931	5,221	3,270.12	3,296.01	3,322.12	3,348.43	3,374.95
Accounts Payable (%)
Capital Expenditure	-4,027	-3,988	-4,288	-6,919	-5,136	-5,033.54	-5,073.40	-5,113.58	-5,154.08	-5,194.90
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 61.34
Beta	0.493
Diluted Shares Outstanding	912
Cost of Debt
Tax Rate	26.33
After-tax Cost of Debt	2.64%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.113
Total Debt	31,920
Total Equity	55,942.08
Total Capital	87,862.08
Debt Weighting	36.33
Equity Weighting	63.67
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	23,468	23,964	22,883	23,449	24,174	24,365.45	24,558.41	24,752.91	24,948.94	25,146.53
EBITDA	9,007	9,917	8,986	9,595	9,704	9,750.71	9,827.94	9,905.77	9,984.22	10,063.29
EBIT	4,993	5,519	4,582	4,986	4,981	5,175.11	5,216.09	5,257.40	5,299.04	5,341.01
Tax Rate	26.18%	27.25%	19.33%	27.85%	26.33%	25.39%	25.39%	25.39%	25.39%	25.39%
EBIAT	3,685.61	4,015.31	3,696.47	3,597.62	3,669.54	3,861.34	3,891.92	3,922.75	3,953.81	3,985.13
Depreciation	4,014	4,398	4,404	4,609	4,723	4,575.60	4,611.84	4,648.37	4,685.18	4,722.28
Accounts Receivable	-	-156	-66	-148	-211	174.80	-34.84	-35.12	-35.39	-35.67
Inventories	-	5	-12	-43	-174	153.57	-3.98	-4.01	-4.04	-4.07
Accounts Payable	-	69	-9	336	2,290	-1,950.88	25.90	26.10	26.31	26.52
Capital Expenditure	-4,027	-3,988	-4,288	-6,919	-5,136	-5,033.54	-5,073.40	-5,113.58	-5,154.08	-5,194.90
UFCF	3,672.61	4,343.31	3,725.47	1,432.62	5,161.54	1,780.89	3,417.44	3,444.51	3,471.79	3,499.28
WACC
PV UFCF						1,698.52	3,108.60	2,988.28	2,872.63	2,761.45
SUM PV UFCF										13,429.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.85
Free cash flow (t + 1)	3,569.27
Terminal Value	125,237.45
Present Value of Terminal Value	98,830.74

Intrinsic Value

Enterprise Value	112,260.21
Net Debt	31,771
Equity Value	80,489.21
Shares Outstanding	912
Equity Value Per Share	88.26