Discounted Cash Flow (DCF) Analysis Unlevered
Power Corporation of Canada (POW.TO)
$35.1
-0.26 (-0.74%)
All numbers are in Millions, Currency in USD
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 | 48,098 | 48,841 | 64,616 | 69,561 | 48,737 | 50,145.50 | 51,594.71 | 53,085.80 | 54,619.99 | 56,198.51 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 2,897 | 2,927 | 3,326 | 4,966 | 3,967 | 3,253.64 | 3,347.67 | 3,444.42 | 3,543.97 | 3,646.39 |
| EBITDA (%) | ||||||||||
| EBIT | - | - | - | - | - | 3,253.64 | 3,347.67 | 3,444.42 | 3,543.97 | 3,646.39 |
| EBIT (%) | ||||||||||
| Depreciation | - | - | - | - | - | - | - | - | - | - |
| 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 | 6,441 | 6,805 | 9,478 | 8,165 | 22,246 | 9,966.46 | 10,254.50 | 10,550.85 | 10,855.77 | 11,169.51 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 6,880 | 7,008 | 7,292 | 7,565 | 8,429 | 6,830.63 | 7,028.03 | 7,231.14 | 7,440.12 | 7,655.14 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 3,816 | 3,976 | 3,186 | 3,840 | 4,111 | 3,506.23 | 3,607.56 | 3,711.82 | 3,819.09 | 3,929.46 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | - | - | - | -566 | -804 | -617.63 | -635.48 | -653.84 | -672.74 | -692.18 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 35.1 |
|---|---|
| Beta | 1.061 |
| Diluted Shares Outstanding | 681.60 |
| Cost of Debt | |
| Tax Rate | 51.17 |
| After-tax Cost of Debt | 1.48% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.701 |
| Total Debt | 21,174 |
| Total Equity | 23,924.16 |
| Total Capital | 45,098.16 |
| Debt Weighting | 46.95 |
| Equity Weighting | 53.05 |
| 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 | 48,098 | 48,841 | 64,616 | 69,561 | 48,737 | 50,145.50 | 51,594.71 | 53,085.80 | 54,619.99 | 56,198.51 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 2,897 | 2,927 | 3,326 | 4,966 | 3,967 | 3,253.64 | 3,347.67 | 3,444.42 | 3,543.97 | 3,646.39 |
| EBIT | - | - | - | - | - | 3,253.64 | 3,347.67 | 3,444.42 | 3,543.97 | 3,646.39 |
| Tax Rate | 66.90% | 67.75% | 43.34% | 44.15% | 51.17% | 54.66% | 54.66% | 54.66% | 54.66% | 54.66% |
| EBIAT | - | - | - | - | - | 1,475.16 | 1,517.80 | 1,561.66 | 1,606.79 | 1,653.23 |
| Depreciation | - | - | - | - | - | - | - | - | - | - |
| Accounts Receivable | - | -128 | -284 | -273 | -864 | 1,598.37 | -197.41 | -203.11 | -208.98 | -215.02 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 160 | -790 | 654 | 271 | -604.77 | 101.33 | 104.26 | 107.27 | 110.37 |
| Capital Expenditure | - | - | - | -566 | -804 | -617.63 | -635.48 | -653.84 | -672.74 | -692.18 |
| UFCF | - | - | - | - | - | 1,851.14 | 786.24 | 808.97 | 832.34 | 856.40 |
| WACC | ||||||||||
| PV UFCF | 1,757.80 | 708.95 | 692.66 | 676.74 | 661.19 | |||||
| SUM PV UFCF | 4,497.35 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.31 |
| Free cash flow (t + 1) | 873.53 |
| Terminal Value | 26,390.56 |
| Present Value of Terminal Value | 20,375.14 |
Intrinsic Value
| Enterprise Value | 24,872.49 |
|---|---|
| Net Debt | 12,307 |
| Equity Value | 12,565.49 |
| Shares Outstanding | 681.60 |
| Equity Value Per Share | 18.44 |