Discounted Cash Flow (DCF) Analysis Unlevered

Brookfield Infrastructure Partners ... (BIP-UN.TO)

$49.21

+0.13 (+0.26%)

All numbers are in Millions, Currency in USD

Stock DCF: 63.50 | 49.21 | 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	4,652	6,597	8,885	11,537	14,427	19,165.92	25,461.46	33,824.93	44,935.60	59,695.86
Revenue (%)
EBITDA	2,037	2,524	3,359	4,653	4,914	7,445.77	9,891.52	13,140.65	17,457.03	23,191.24
EBITDA (%)
EBIT	1,236	1,310	1,654	2,617	2,756	4,094.95	5,440.04	7,226.97	9,600.85	12,754.50
EBIT (%)
Depreciation	801	1,214	1,705	2,036	2,158	3,350.82	4,451.48	5,913.68	7,856.18	10,436.74
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	630	866	1,316	1,806	1,279	2,529.92	3,360.94	4,464.93	5,931.55	7,879.92
Total Cash (%)
Account Receivables	1,105	1,802	1,531	1,923	3,064.59	4,071.23	5,408.53	7,185.10	9,545.23	12,680.61
Account Receivables (%)
Inventories	141	242	221	400	456.39	606.30	805.46	1,070.03	1,421.51	1,888.44
Inventories (%)
Accounts Payable	463	854	1,461	1,877	2,005.74	2,664.58	3,539.83	4,702.58	6,247.26	8,299.34
Accounts Payable (%)
Capital Expenditure	-839	-1,182	-1,472	-2,067	-2,734	-3,426.35	-4,551.83	-6,046.99	-8,033.28	-10,672.02
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 49.21
Beta	0.892
Diluted Shares Outstanding	442.05
Cost of Debt
Tax Rate	82.38
After-tax Cost of Debt	1.08%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.922
Total Debt	30,233
Total Equity	21,753.28
Total Capital	51,986.28
Debt Weighting	58.16
Equity Weighting	41.84
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	4,652	6,597	8,885	11,537	14,427	19,165.92	25,461.46	33,824.93	44,935.60	59,695.86
EBITDA	2,037	2,524	3,359	4,653	4,914	7,445.77	9,891.52	13,140.65	17,457.03	23,191.24
EBIT	1,236	1,310	1,654	2,617	2,756	4,094.95	5,440.04	7,226.97	9,600.85	12,754.50
Tax Rate	71.88%	77.26%	72.89%	77.02%	82.38%	76.29%	76.29%	76.29%	76.29%	76.29%
EBIAT	347.56	297.86	448.45	601.45	485.68	971.12	1,290.10	1,713.87	2,276.84	3,024.72
Depreciation	801	1,214	1,705	2,036	2,158	3,350.82	4,451.48	5,913.68	7,856.18	10,436.74
Accounts Receivable	-	-697	271	-392	-1,141.59	-1,006.64	-1,337.30	-1,776.57	-2,360.13	-3,135.38
Inventories	-	-101	21	-179	-56.39	-149.91	-199.16	-264.57	-351.48	-466.93
Accounts Payable	-	391	607	416	128.74	658.84	875.25	1,162.75	1,544.68	2,052.08
Capital Expenditure	-839	-1,182	-1,472	-2,067	-2,734	-3,426.35	-4,551.83	-6,046.99	-8,033.28	-10,672.02
UFCF	309.56	-77.14	1,580.45	415.45	-1,159.55	397.86	528.55	702.17	932.81	1,239.22
WACC
PV UFCF						382.78	489.24	625.30	799.21	1,021.49
SUM PV UFCF										3,318.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.94
Free cash flow (t + 1)	1,264
Terminal Value	65,154.68
Present Value of Terminal Value	53,707.14

Intrinsic Value

Enterprise Value	57,025.17
Net Debt	28,954
Equity Value	28,071.17
Shares Outstanding	442.05
Equity Value Per Share	63.50