Discounted Cash Flow (DCF) Analysis Unlevered

DCP Midstream, LP (DCP)

$41.69

+0.03 (+0.07%)
All numbers are in Millions, Currency in USD
Stock DCF: 60.15 | 41.69 | 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 9,8227,6256,30210,70714,99317,624.6220,718.1624,354.6828,629.4933,654.64
Revenue (%)
EBITDA 9586627557361,3511,632.071,918.532,255.282,651.143,116.47
EBITDA (%)
EBIT 570258379372991891.281,047.721,231.621,447.791,701.91
EBIT (%)
Depreciation 388404376364360740.79870.821,023.671,203.341,414.56
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 11521130.4735.8242.1149.5058.18
Total Cash (%)
Account Receivables 1,0338788201,4251,3582,023.672,378.872,796.423,287.263,864.25
Account Receivables (%)
Inventories 7946387783115.73136.05159.93188221
Inventories (%)
Accounts Payable 8076385369771,1991,487.891,749.052,056.052,416.942,841.17
Accounts Payable (%)
Capital Expenditure -595-519-160-108-246-636.34-748.04-879.34-1,033.68-1,215.12
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 41.69
Beta 2.331
Diluted Shares Outstanding 208.50
Cost of Debt
Tax Rate 0.47
After-tax Cost of Debt 5.69%
Risk-Free Rate
Market Risk Premium
Cost of Equity 15.253
Total Debt 4,863
Total Equity 8,692.36
Total Capital 13,555.36
Debt Weighting 35.88
Equity Weighting 64.12
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 9,8227,6256,30210,70714,99317,624.6220,718.1624,354.6828,629.4933,654.64
EBITDA 9586627557361,3511,632.071,918.532,255.282,651.143,116.47
EBIT 570258379372991891.281,047.721,231.621,447.791,701.91
Tax Rate 2.30%15.00%-124.83%2.49%0.47%-20.91%-20.91%-20.91%-20.91%-20.91%
EBIAT 556.92219.30852.12362.72986.311,077.681,266.841,489.201,750.592,057.86
Depreciation 388404376364360740.79870.821,023.671,203.341,414.56
Accounts Receivable -15558-60567-665.67-355.20-417.55-490.84-576.99
Inventories -338-39-6-32.73-20.31-23.88-28.07-33
Accounts Payable --169-102441222288.89261.16307360.89424.23
Capital Expenditure -595-519-160-108-246-636.34-748.04-879.34-1,033.68-1,215.12
UFCF 349.92123.301,032.12415.721,383.31772.621,275.271,499.101,762.232,071.54
WACC
PV UFCF 690.951,019.911,072.191,127.161,184.94
SUM PV UFCF 5,095.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.82
Free cash flow (t + 1) 2,112.98
Terminal Value 21,517.06
Present Value of Terminal Value 12,307.94

Intrinsic Value

Enterprise Value 17,403.09
Net Debt 4,862
Equity Value 12,541.09
Shares Outstanding 208.50
Equity Value Per Share 60.15