Discounted Cash Flow (DCF) Analysis Unlevered

Sempra (SRE)

$142.78

+3.09 (+2.21%)

All numbers are in Millions, Currency in USD

Stock DCF: 501.21 | 142.78 | 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	11,687	10,829	11,370	12,857	14,439	15,270.59	16,150.06	17,080.20	18,063.90	19,104.25
Revenue (%)
EBITDA	3,620	5,159	6,929	4,470	4,877	6,355.61	6,721.65	7,108.77	7,518.19	7,951.18
EBITDA (%)
EBIT	2,071	3,590	5,263	2,615	3,895	4,412.45	4,666.57	4,935.34	5,219.58	5,520.19
EBIT (%)
Depreciation	1,549	1,569	1,666	1,855	982	1,943.17	2,055.08	2,173.44	2,298.61	2,431
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	190	108	13,400	559	370	3,890.56	4,114.63	4,351.60	4,602.23	4,867.28
Total Cash (%)
Account Receivables	1,957	1,860	2,114	2,571	2,748	2,795.82	2,956.84	3,127.13	3,307.23	3,497.71
Account Receivables (%)
Inventories	296	277	308	389	403	415.85	439.81	465.13	491.92	520.25
Inventories (%)
Accounts Payable	1,324	1,234	1,359	1,849	953	1,699.86	1,797.76	1,901.30	2,010.80	2,126.61
Accounts Payable (%)
Capital Expenditure	-3,784	-3,708	-4,676	-5,015	231	-4,433.09	-4,688.40	-4,958.42	-5,243.99	-5,546.01
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 142.78
Beta	0.731
Diluted Shares Outstanding	313.04
Cost of Debt
Tax Rate	-70.14
After-tax Cost of Debt	15.78%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.830
Total Debt	6,680
Total Equity	44,695.28
Total Capital	51,375.28
Debt Weighting	13.00
Equity Weighting	87.00
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	11,687	10,829	11,370	12,857	14,439	15,270.59	16,150.06	17,080.20	18,063.90	19,104.25
EBITDA	3,620	5,159	6,929	4,470	4,877	6,355.61	6,721.65	7,108.77	7,518.19	7,951.18
EBIT	2,071	3,590	5,263	2,615	3,895	4,412.45	4,666.57	4,935.34	5,219.58	5,520.19
Tax Rate	-0.38%	-26.76%	-164.14%	-501.83%	-70.14%	-152.65%	-152.65%	-152.65%	-152.65%	-152.65%
EBIAT	2,078.92	4,550.65	13,901.53	15,737.76	6,627.01	11,148.02	11,790.07	12,469.09	13,187.22	13,946.72
Depreciation	1,549	1,569	1,666	1,855	982	1,943.17	2,055.08	2,173.44	2,298.61	2,431
Accounts Receivable	-	97	-254	-457	-177	-47.82	-161.02	-170.29	-180.10	-190.47
Inventories	-	19	-31	-81	-14	-12.85	-23.95	-25.33	-26.79	-28.33
Accounts Payable	-	-90	125	490	-896	746.86	97.90	103.54	109.50	115.81
Capital Expenditure	-3,784	-3,708	-4,676	-5,015	231	-4,433.09	-4,688.40	-4,958.42	-5,243.99	-5,546.01
UFCF	-156.08	2,437.65	10,731.53	12,529.76	6,753.01	9,344.29	9,069.67	9,592.02	10,144.46	10,728.71
WACC
PV UFCF						8,652.92	7,777.22	7,616.57	7,459.24	7,305.16
SUM PV UFCF										38,811.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.99
Free cash flow (t + 1)	10,943.28
Terminal Value	182,692.51
Present Value of Terminal Value	124,395.03

Intrinsic Value

Enterprise Value	163,206.14
Net Debt	6,310
Equity Value	156,896.14
Shares Outstanding	313.04
Equity Value Per Share	501.21