Discounted Cash Flow (DCF) Analysis Unlevered

Rogers Communications Inc. (RCI)

$45.55

+0.35 (+0.77%)

All numbers are in Millions, Currency in USD

Stock DCF: 121.44 | 45.55 | 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	15,096	15,073	13,916	14,655	15,396	15,493.70	15,592.03	15,690.97	15,790.55	15,890.75
Revenue (%)
EBITDA	6,020	6,278	5,906	5,882	6,407	6,374.74	6,415.19	6,455.90	6,496.87	6,538.10
EBITDA (%)
EBIT	3,751	3,713	3,211	3,229	3,770	3,689.84	3,713.26	3,736.82	3,760.54	3,784.40
EBIT (%)
Depreciation	2,269	2,565	2,695	2,653	2,637	2,684.89	2,701.93	2,719.08	2,736.33	2,753.70
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	405	494	2,484	715	463	982.19	988.42	994.69	1,001	1,007.36
Total Cash (%)
Account Receivables	3,311	3,538	3,389	3,962	4,295	3,863.84	3,888.36	3,913.04	3,937.87	3,962.86
Account Receivables (%)
Inventories	466	460	479	535	438	498.16	501.33	504.51	507.71	510.93
Inventories (%)
Accounts Payable	3,052	3,033	2,714	3,416	3,722	3,325.77	3,346.88	3,368.12	3,389.49	3,411
Accounts Payable (%)
Capital Expenditure	-2,844	-2,867	-2,369	-2,842	-3,122	-2,930	-2,948.59	-2,967.30	-2,986.13	-3,005.08
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 45.55
Beta	0.521
Diluted Shares Outstanding	506
Cost of Debt
Tax Rate	26.61
After-tax Cost of Debt	3.02%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.569
Total Debt	36,746
Total Equity	23,048.30
Total Capital	59,794.30
Debt Weighting	61.45
Equity Weighting	38.55
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	15,096	15,073	13,916	14,655	15,396	15,493.70	15,592.03	15,690.97	15,790.55	15,890.75
EBITDA	6,020	6,278	5,906	5,882	6,407	6,374.74	6,415.19	6,455.90	6,496.87	6,538.10
EBIT	3,751	3,713	3,211	3,229	3,770	3,689.84	3,713.26	3,736.82	3,760.54	3,784.40
Tax Rate	26.91%	25.84%	26.70%	26.75%	26.61%	26.56%	26.56%	26.56%	26.56%	26.56%
EBIAT	2,741.68	2,753.42	2,353.55	2,365.20	2,766.97	2,709.73	2,726.93	2,744.23	2,761.65	2,779.17
Depreciation	2,269	2,565	2,695	2,653	2,637	2,684.89	2,701.93	2,719.08	2,736.33	2,753.70
Accounts Receivable	-	-227	149	-573	-333	431.16	-24.52	-24.68	-24.83	-24.99
Inventories	-	6	-19	-56	97	-60.16	-3.16	-3.18	-3.20	-3.22
Accounts Payable	-	-19	-319	702	306	-396.23	21.11	21.24	21.37	21.51
Capital Expenditure	-2,844	-2,867	-2,369	-2,842	-3,122	-2,930	-2,948.59	-2,967.30	-2,986.13	-3,005.08
UFCF	2,166.68	2,211.42	2,490.55	2,249.20	2,351.97	2,439.40	2,473.69	2,489.39	2,505.19	2,521.09
WACC
PV UFCF						2,336.81	2,270.01	2,188.35	2,109.62	2,033.73
SUM PV UFCF										10,938.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.39
Free cash flow (t + 1)	2,571.51
Terminal Value	107,594.45
Present Value of Terminal Value	86,795.14

Intrinsic Value

Enterprise Value	97,733.66
Net Debt	36,283
Equity Value	61,450.66
Shares Outstanding	506
Equity Value Per Share	121.44