Discounted Cash Flow (DCF) Analysis Unlevered
Enable Midstream Partners, LP (ENBL)
$7.05
+0.10 (+1.44%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected |
| Revenue | 2,272 | 2,803 | 3,431 | 2,960 | 2,463 | 2,556.95 | 2,654.48 | 2,755.74 | 2,860.85 | 2,969.98 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 750 | 921 | 1,070 | 1,018 | 686 | 814.64 | 845.71 | 877.97 | 911.46 | 946.23 |
| EBITDA (%) | ||||||||||
| EBIT | 412 | 555 | 672 | 585 | 266 | 450.45 | 467.63 | 485.47 | 503.99 | 523.21 |
| EBIT (%) | ||||||||||
| Depreciation | 338 | 366 | 398 | 433 | 420 | 364.19 | 378.08 | 392.50 | 407.47 | 423.01 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected |
| Total Cash | 6 | 5 | 8 | 4 | 3 | 4.77 | 4.95 | 5.14 | 5.34 | 5.54 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 262 | 295 | 309 | 269 | 263 | 259.93 | 269.84 | 280.14 | 290.82 | 301.92 |
| Account Receivables (%) | ||||||||||
| Inventories | 41 | 40 | 50 | 46 | 42 | 40.65 | 42.20 | 43.81 | 45.48 | 47.21 |
| Inventories (%) | ||||||||||
| Accounts Payable | 184 | 266 | 292 | 162 | 151 | 192.81 | 200.16 | 207.80 | 215.72 | 223.95 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -383 | -416 | -728 | -432 | -215 | -389.89 | -404.76 | -420.20 | -436.23 | -452.87 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 7.05 |
|---|---|
| Beta | 2.339 |
| Diluted Shares Outstanding | 433.33 |
| Cost of Debt | |
| Tax Rate | -6.02 |
| After-tax Cost of Debt | 4.21% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 14.547 |
| Total Debt | 4,229 |
| Total Equity | 3,055 |
| Total Capital | 7,284 |
| Debt Weighting | 58.06 |
| Equity Weighting | 41.94 |
| Wacc |
Build Up Free Cash
Year A/P | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected |
| Revenue | 2,272 | 2,803 | 3,431 | 2,960 | 2,463 | 2,556.95 | 2,654.48 | 2,755.74 | 2,860.85 | 2,969.98 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 750 | 921 | 1,070 | 1,018 | 686 | 814.64 | 845.71 | 877.97 | 911.46 | 946.23 |
| EBIT | 412 | 555 | 672 | 585 | 266 | 450.45 | 467.63 | 485.47 | 503.99 | 523.21 |
| Tax Rate | 0.64% | 0.00% | 0.19% | 0.75% | -6.02% | -0.89% | -0.89% | -0.89% | -0.89% | -0.89% |
| EBIAT | 409.38 | 555 | 670.71 | 580.60 | 282.02 | 454.45 | 471.79 | 489.78 | 508.47 | 527.86 |
| Depreciation | 338 | 366 | 398 | 433 | 420 | 364.19 | 378.08 | 392.50 | 407.47 | 423.01 |
| Accounts Receivable | - | -33 | -14 | 40 | 6 | 3.07 | -9.91 | -10.29 | -10.69 | -11.09 |
| Inventories | - | 1 | -10 | 4 | 4 | 1.35 | -1.55 | -1.61 | -1.67 | -1.73 |
| Accounts Payable | - | 82 | 26 | -130 | -11 | 41.81 | 7.35 | 7.64 | 7.93 | 8.23 |
| Capital Expenditure | -383 | -416 | -728 | -432 | -215 | -389.89 | -404.76 | -420.20 | -436.23 | -452.87 |
| UFCF | 364.38 | 555 | 342.71 | 495.60 | 486.02 | 474.98 | 441 | 457.82 | 475.28 | 493.41 |
| WACC | ||||||||||
| PV UFCF | 437.57 | 374.26 | 357.93 | 342.32 | 327.39 | |||||
| SUM PV UFCF | 1,839.47 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.55 |
| Free cash flow (t + 1) | 503.28 |
| Terminal Value | 7,683.64 |
| Present Value of Terminal Value | 5,098.21 |
Intrinsic Value
| Enterprise Value | 6,937.69 |
|---|---|
| Net Debt | 4,226 |
| Equity Value | 2,711.69 |
| Shares Outstanding | 433.33 |
| Equity Value Per Share | 6.26 |