Discounted Cash Flow (DCF) Analysis Unlevered

Enterprise Products Partners L.P. (EPD)

$24.94

-0.18 (-0.72%)

All numbers are in Millions, Currency in USD

Stock DCF: 68.74 | 24.94 | 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	36,534.20	32,789.20	27,199.70	40,806.90	58,186	67,687.51	78,740.58	91,598.57	106,556.20	123,956.36
Revenue (%)
EBITDA	7,079.90	7,801.40	6,978.10	7,863.70	8,790	13,971.21	16,252.64	18,906.63	21,993.99	25,585.52
EBITDA (%)
EBIT	5,288.30	5,852.10	4,906.20	5,990.70	6,816	10,390.72	12,087.47	14,061.30	16,357.45	19,028.55
EBIT (%)
Depreciation	1,791.60	1,949.30	2,071.90	1,873	1,974	3,580.49	4,165.17	4,845.32	5,636.54	6,556.97
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	344.80	334.70	3,488.90	2,819	76	2,955.27	3,437.86	3,999.24	4,652.30	5,412
Total Cash (%)
Account Receivables	3,662.60	4,876.10	4,808.20	6,967	6,964	9,694.91	11,278.04	13,119.70	15,262.09	17,754.32
Account Receivables (%)
Inventories	1,522.10	2,091.40	3,303.50	2,681	2,554	4,555.27	5,299.12	6,164.45	7,171.07	8,342.08
Inventories (%)
Accounts Payable	1,243	1,166.80	854.10	632	743	1,749.94	2,035.69	2,368.11	2,754.82	3,204.66
Accounts Payable (%)
Capital Expenditure	-4,223.20	-4,531.70	-3,287.90	-2,223	-1,964	-6,266.68	-7,290	-8,480.43	-9,865.25	-11,476.20
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 24.94
Beta	1.054
Diluted Shares Outstanding	2,200.40
Cost of Debt
Tax Rate	3.63
After-tax Cost of Debt	4.24%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.477
Total Debt	28,295
Total Equity	54,877.98
Total Capital	83,172.98
Debt Weighting	34.02
Equity Weighting	65.98
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	36,534.20	32,789.20	27,199.70	40,806.90	58,186	67,687.51	78,740.58	91,598.57	106,556.20	123,956.36
EBITDA	7,079.90	7,801.40	6,978.10	7,863.70	8,790	13,971.21	16,252.64	18,906.63	21,993.99	25,585.52
EBIT	5,288.30	5,852.10	4,906.20	5,990.70	6,816	10,390.72	12,087.47	14,061.30	16,357.45	19,028.55
Tax Rate	2.94%	2.99%	-0.38%	3.89%	3.63%	2.61%	2.61%	2.61%	2.61%	2.61%
EBIAT	5,132.81	5,677.26	4,924.72	5,757.79	6,568.34	10,119.06	11,771.46	13,693.69	15,929.81	18,531.07
Depreciation	1,791.60	1,949.30	2,071.90	1,873	1,974	3,580.49	4,165.17	4,845.32	5,636.54	6,556.97
Accounts Receivable	-	-1,213.50	67.90	-2,158.80	3	-2,730.91	-1,583.14	-1,841.65	-2,142.39	-2,492.23
Inventories	-	-569.30	-1,212.10	622.50	127	-2,001.27	-743.85	-865.32	-1,006.63	-1,171
Accounts Payable	-	-76.20	-312.70	-222.10	111	1,006.94	285.76	332.42	386.70	449.85
Capital Expenditure	-4,223.20	-4,531.70	-3,287.90	-2,223	-1,964	-6,266.68	-7,290	-8,480.43	-9,865.25	-11,476.20
UFCF	2,701.21	1,235.86	2,251.82	3,649.39	6,819.34	3,707.63	6,605.39	7,684.02	8,938.79	10,398.46
WACC
PV UFCF						3,463.78	5,765.09	6,265.42	6,809.17	7,400.11
SUM PV UFCF										29,703.59

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.04
Free cash flow (t + 1)	10,606.42
Terminal Value	210,444.92
Present Value of Terminal Value	149,764.18

Intrinsic Value

Enterprise Value	179,467.77
Net Debt	28,219
Equity Value	151,248.77
Shares Outstanding	2,200.40
Equity Value Per Share	68.74