Discounted Cash Flow (DCF) Analysis Unlevered

Emera Incorporated (EMA.TO)

$56.36

-0.19 (-0.34%)

All numbers are in Millions, Currency in USD

Stock DCF: -102.42 | 56.36 | 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	6,524	6,111	5,506	5,765	7,588	7,969.21	8,369.56	8,790.03	9,231.62	9,695.40
Revenue (%)
EBITDA	2,456	2,418	2,902	2,080	2,861	3,246.71	3,409.82	3,581.13	3,761.03	3,949.98
EBITDA (%)
EBIT	1,528	1,507	2,003	1,165	1,902	2,067.76	2,171.64	2,280.74	2,395.31	2,515.65
EBIT (%)
Depreciation	928	911	899	915	959	1,178.96	1,238.19	1,300.39	1,365.72	1,434.33
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	325	231	220	394	310	377.37	396.33	416.24	437.16	459.12
Total Cash (%)
Account Receivables	1,390	1,150	845	1,072	1,674	1,532.12	1,609.09	1,689.93	1,774.83	1,863.99
Account Receivables (%)
Inventories	474	467	453	538	769	679	713.11	748.94	786.56	826.08
Inventories (%)
Accounts Payable	1,289	1,118	1,148	1,485	2,025	1,774.72	1,863.88	1,957.51	2,055.85	2,159.14
Accounts Payable (%)
Capital Expenditure	-2,162	-2,495	-2,623	-2,359	-2,596	-3,135.68	-3,293.21	-3,458.66	-3,632.41	-3,814.90
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 56.36
Beta	0.238
Diluted Shares Outstanding	268
Cost of Debt
Tax Rate	15.58
After-tax Cost of Debt	3.14%
Risk-Free Rate
Market Risk Premium
Cost of Equity	4.818
Total Debt	19,044
Total Equity	15,104.48
Total Capital	34,148.48
Debt Weighting	55.77
Equity Weighting	44.23
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	6,524	6,111	5,506	5,765	7,588	7,969.21	8,369.56	8,790.03	9,231.62	9,695.40
EBITDA	2,456	2,418	2,902	2,080	2,861	3,246.71	3,409.82	3,581.13	3,761.03	3,949.98
EBIT	1,528	1,507	2,003	1,165	1,902	2,067.76	2,171.64	2,280.74	2,395.31	2,515.65
Tax Rate	8.58%	8.17%	25.81%	-0.90%	15.58%	11.45%	11.45%	11.45%	11.45%	11.45%
EBIAT	1,396.92	1,383.86	1,486	1,175.50	1,605.71	1,831.05	1,923.04	2,019.65	2,121.11	2,227.67
Depreciation	928	911	899	915	959	1,178.96	1,238.19	1,300.39	1,365.72	1,434.33
Accounts Receivable	-	240	305	-227	-602	141.88	-76.97	-80.84	-84.90	-89.16
Inventories	-	7	14	-85	-231	90	-34.11	-35.83	-37.62	-39.52
Accounts Payable	-	-171	30	337	540	-250.28	89.16	93.64	98.34	103.28
Capital Expenditure	-2,162	-2,495	-2,623	-2,359	-2,596	-3,135.68	-3,293.21	-3,458.66	-3,632.41	-3,814.90
UFCF	162.92	-124.14	111	-243.50	-324.29	-144.08	-153.91	-161.64	-169.76	-178.29
WACC
PV UFCF						-138.69	-142.63	-144.20	-145.79	-147.39
SUM PV UFCF										-718.70

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.88
Free cash flow (t + 1)	-181.86
Terminal Value	-9,673.38
Present Value of Terminal Value	-7,996.84

Intrinsic Value

Enterprise Value	-8,715.54
Net Debt	18,734
Equity Value	-27,449.54
Shares Outstanding	268
Equity Value Per Share	-102.42