Discounted Cash Flow (DCF) Analysis Unlevered

Enbridge Inc. (ENB)

$41.78

+0.98 (+2.40%)

All numbers are in Millions, Currency in USD

Stock DCF: 97.40 | 41.78 | undervalue

Operating Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	44,378	46,378	50,069	39,087	47,071	48,360.48	49,685.29	51,046.38	52,444.77	53,881.46
Revenue (%)
EBITDA	6,151	9,199	13,534	10,693	14,161	11,429.25	11,742.35	12,064.02	12,394.51	12,734.05
EBITDA (%)
EBIT	2,988	5,953	10,143	6,981	10,309	7,697.83	7,908.71	8,125.36	8,347.95	8,576.64
EBIT (%)
Depreciation	3,163	3,246	3,391	3,712	3,852	3,731.42	3,833.64	3,938.66	4,046.56	4,157.41
Depreciation (%)

Balance Sheet Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Total Cash	480	518	648	452	286	508.44	522.36	536.67	551.38	566.48
Total Cash (%)
Account Receivables	7,100	6,098	6,523	5,001	6,181	6,586.81	6,767.25	6,952.64	7,143.10	7,338.78
Account Receivables (%)
Inventories	1,528	1,339	1,299	1,536	1,670	1,586.44	1,629.90	1,674.55	1,720.42	1,767.55
Inventories (%)
Accounts Payable	5,135	4,604	4,536	3,497	4,470	4,739.39	4,869.22	5,002.61	5,139.66	5,280.46
Accounts Payable (%)
Capital Expenditure	-8,864	-7,346	-5,692	-5,620	-8,093	-7,617.06	-7,825.72	-8,040.10	-8,260.36	-8,486.65
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 41.78
Beta	0.906
Diluted Shares Outstanding	2,020
Cost of Debt
Tax Rate	19.92
After-tax Cost of Debt	2.87%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.402
Total Debt	75,640
Total Equity	84,395.60
Total Capital	160,035.60
Debt Weighting	47.26
Equity Weighting	52.74
Wacc

Build Up Free Cash

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	44,378	46,378	50,069	39,087	47,071	48,360.48	49,685.29	51,046.38	52,444.77	53,881.46
EBITDA	6,151	9,199	13,534	10,693	14,161	11,429.25	11,742.35	12,064.02	12,394.51	12,734.05
EBIT	2,988	5,953	10,143	6,981	10,309	7,697.83	7,908.71	8,125.36	8,347.95	8,576.64
Tax Rate	-402.46%	19.27%	24.29%	19.74%	19.92%	-63.85%	-63.85%	-63.85%	-63.85%	-63.85%
EBIAT	15,013.52	4,805.76	7,679.60	5,603.13	8,254.94	12,612.74	12,958.26	13,313.24	13,677.95	14,052.65
Depreciation	3,163	3,246	3,391	3,712	3,852	3,731.42	3,833.64	3,938.66	4,046.56	4,157.41
Accounts Receivable	-	1,002	-425	1,522	-1,180	-405.81	-180.44	-185.38	-190.46	-195.68
Inventories	-	189	40	-237	-134	83.56	-43.46	-44.65	-45.87	-47.13
Accounts Payable	-	-531	-68	-1,039	973	269.39	129.83	133.39	137.04	140.80
Capital Expenditure	-8,864	-7,346	-5,692	-5,620	-8,093	-7,617.06	-7,825.72	-8,040.10	-8,260.36	-8,486.65
UFCF	9,312.52	1,365.75	4,925.60	3,941.13	3,672.94	8,674.24	8,872.10	9,115.15	9,364.85	9,621.40
WACC
PV UFCF						8,240.77	8,007.55	7,815.80	7,628.65	7,445.97
SUM PV UFCF										39,138.75

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.26
Free cash flow (t + 1)	9,813.83
Terminal Value	301,037.59
Present Value of Terminal Value	232,972.10

Intrinsic Value

Enterprise Value	272,110.85
Net Debt	75,354
Equity Value	196,756.85
Shares Outstanding	2,020
Equity Value Per Share	97.40