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 44,37846,37850,06939,08747,07148,360.4849,685.2951,046.3852,444.7753,881.46
Revenue (%)
EBITDA 6,1519,19913,53410,69314,16111,429.2511,742.3512,064.0212,394.5112,734.05
EBITDA (%)
EBIT 2,9885,95310,1436,98110,3097,697.837,908.718,125.368,347.958,576.64
EBIT (%)
Depreciation 3,1633,2463,3913,7123,8523,731.423,833.643,938.664,046.564,157.41
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 480518648452286508.44522.36536.67551.38566.48
Total Cash (%)
Account Receivables 7,1006,0986,5235,0016,1816,586.816,767.256,952.647,143.107,338.78
Account Receivables (%)
Inventories 1,5281,3391,2991,5361,6701,586.441,629.901,674.551,720.421,767.55
Inventories (%)
Accounts Payable 5,1354,6044,5363,4974,4704,739.394,869.225,002.615,139.665,280.46
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 44,37846,37850,06939,08747,07148,360.4849,685.2951,046.3852,444.7753,881.46
EBITDA 6,1519,19913,53410,69314,16111,429.2511,742.3512,064.0212,394.5112,734.05
EBIT 2,9885,95310,1436,98110,3097,697.837,908.718,125.368,347.958,576.64
Tax Rate -402.46%19.27%24.29%19.74%19.92%-63.85%-63.85%-63.85%-63.85%-63.85%
EBIAT 15,013.524,805.767,679.605,603.138,254.9412,612.7412,958.2613,313.2413,677.9514,052.65
Depreciation 3,1633,2463,3913,7123,8523,731.423,833.643,938.664,046.564,157.41
Accounts Receivable -1,002-4251,522-1,180-405.81-180.44-185.38-190.46-195.68
Inventories -18940-237-13483.56-43.46-44.65-45.87-47.13
Accounts Payable --531-68-1,039973269.39129.83133.39137.04140.80
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 9,312.521,365.754,925.603,941.133,672.948,674.248,872.109,115.159,364.859,621.40
WACC
PV UFCF 8,240.778,007.557,815.807,628.657,445.97
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