Discounted Cash Flow (DCF) Analysis Unlevered

Sempra (SRE)

$161.0059

+0.51 (+0.32%)

All numbers are in Millions, Currency in USD

Stock DCF: 331.15 | 161.0059 | 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	11,207	11,687	10,829	11,370	12,857	13,339.64	13,840.40	14,359.96	14,899.02	15,458.31
Revenue (%)
EBITDA	3,682	3,620	5,159	6,929	4,470	5,527.35	5,734.85	5,950.13	6,173.49	6,405.24
EBITDA (%)
EBIT	2,192	2,071	3,590	5,263	2,615	3,656.64	3,793.90	3,936.32	4,084.09	4,237.40
EBIT (%)
Depreciation	1,490	1,549	1,569	1,666	1,855	1,870.72	1,940.94	2,013.80	2,089.40	2,167.83
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	288	190	108	13,400	559	3,398.80	3,526.39	3,658.77	3,796.11	3,938.62
Total Cash (%)
Account Receivables	1,731	1,957	1,860	2,114	2,571	2,346.62	2,434.71	2,526.11	2,620.93	2,719.32
Account Receivables (%)
Inventories	307	296	277	308	389	361.89	375.48	389.57	404.20	419.37
Inventories (%)
Accounts Payable	1,350	1,324	1,234	1,359	1,849	1,630.21	1,691.41	1,754.90	1,820.78	1,889.13
Accounts Payable (%)
Capital Expenditure	-3,949	-3,784	-3,708	-4,676	-5,015	-4,855.31	-5,037.57	-5,226.68	-5,422.88	-5,626.45
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 161.0,059
Beta	0.712
Diluted Shares Outstanding	313.04
Cost of Debt
Tax Rate	-501.83
After-tax Cost of Debt	4.86%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.908
Total Debt	24,645
Total Equity	50,400.64
Total Capital	75,045.64
Debt Weighting	32.84
Equity Weighting	67.16
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	11,207	11,687	10,829	11,370	12,857	13,339.64	13,840.40	14,359.96	14,899.02	15,458.31
EBITDA	3,682	3,620	5,159	6,929	4,470	5,527.35	5,734.85	5,950.13	6,173.49	6,405.24
EBIT	2,192	2,071	3,590	5,263	2,615	3,656.64	3,793.90	3,936.32	4,084.09	4,237.40
Tax Rate	83.79%	-0.38%	-26.76%	-164.14%	-501.83%	-121.86%	-121.86%	-121.86%	-121.86%	-121.86%
EBIAT	355.42	2,078.92	4,550.65	13,901.53	15,737.76	8,112.76	8,417.30	8,733.28	9,061.12	9,401.27
Depreciation	1,490	1,549	1,569	1,666	1,855	1,870.72	1,940.94	2,013.80	2,089.40	2,167.83
Accounts Receivable	-	-226	97	-254	-457	224.38	-88.09	-91.40	-94.83	-98.39
Inventories	-	11	19	-31	-81	27.11	-13.59	-14.10	-14.62	-15.17
Accounts Payable	-	-26	-90	125	490	-218.79	61.20	63.49	65.88	68.35
Capital Expenditure	-3,949	-3,784	-3,708	-4,676	-5,015	-4,855.31	-5,037.57	-5,226.68	-5,422.88	-5,626.45
UFCF	-2,103.58	-397.08	2,437.65	10,731.53	12,529.76	5,160.87	5,280.20	5,478.41	5,684.07	5,897.44
WACC
PV UFCF						4,857.74	4,678.15	4,568.68	4,461.77	4,357.36
SUM PV UFCF										22,923.69

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.24
Free cash flow (t + 1)	6,015.39
Terminal Value	141,872.38
Present Value of Terminal Value	104,823.23

Intrinsic Value

Enterprise Value	127,746.93
Net Debt	24,086
Equity Value	103,660.93
Shares Outstanding	313.04
Equity Value Per Share	331.15