Discounted Cash Flow (DCF) Analysis Unlevered

TELUS Corporation (T.TO)

$25.71

-0.01 (-0.04%)

All numbers are in Millions, Currency in USD

Stock DCF: 21.54 | 25.71 | overvalue

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	14,095	14,589	15,341	16,838	18,292	19,529.12	20,849.91	22,260.03	23,765.52	25,372.83
Revenue (%)
EBITDA	5,040	5,478	5,400	6,238	6,538	7,081.09	7,559.99	8,071.29	8,617.17	9,199.96
EBITDA (%)
EBIT	2,773	2,901	2,388	3,022	3,086	3,513.01	3,750.60	4,004.26	4,275.08	4,564.21
EBIT (%)
Depreciation	2,267	2,577	3,012	3,216	3,452	3,568.07	3,809.39	4,067.03	4,342.09	4,635.75
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	414	535	848	723	974	849.54	907	968.34	1,033.83	1,103.75
Total Cash (%)
Account Receivables	2,463	2,826	2,942	3,320	3,881	3,786.96	4,043.08	4,316.52	4,608.45	4,920.13
Account Receivables (%)
Inventories	376	437	407	448	537	543.39	580.14	619.38	661.27	705.99
Inventories (%)
Accounts Payable	686	892	855	1,213	1,382	1,223.06	1,305.77	1,394.08	1,488.37	1,589.03
Accounts Payable (%)
Capital Expenditure	-2,875	-3,894	-2,822	-5,316	-3,647	-4,569.54	-4,878.58	-5,208.53	-5,560.80	-5,936.88
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 25.71
Beta	0.668
Diluted Shares Outstanding	1,351
Cost of Debt
Tax Rate	30.45
After-tax Cost of Debt	2.40%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.853
Total Debt	25,141
Total Equity	34,734.21
Total Capital	59,875.21
Debt Weighting	41.99
Equity Weighting	58.01
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	14,095	14,589	15,341	16,838	18,292	19,529.12	20,849.91	22,260.03	23,765.52	25,372.83
EBITDA	5,040	5,478	5,400	6,238	6,538	7,081.09	7,559.99	8,071.29	8,617.17	9,199.96
EBIT	2,773	2,901	2,388	3,022	3,086	3,513.01	3,750.60	4,004.26	4,275.08	4,564.21
Tax Rate	26.47%	22.19%	29.46%	27.35%	30.45%	27.18%	27.18%	27.18%	27.18%	27.18%
EBIAT	2,038.97	2,257.20	1,684.58	2,195.53	2,146.38	2,558.06	2,731.07	2,915.78	3,112.98	3,323.51
Depreciation	2,267	2,577	3,012	3,216	3,452	3,568.07	3,809.39	4,067.03	4,342.09	4,635.75
Accounts Receivable	-	-363	-116	-378	-561	94.04	-256.12	-273.44	-291.93	-311.68
Inventories	-	-61	30	-41	-89	-6.39	-36.75	-39.24	-41.89	-44.72
Accounts Payable	-	206	-37	358	169	-158.94	82.72	88.31	94.28	100.66
Capital Expenditure	-2,875	-3,894	-2,822	-5,316	-3,647	-4,569.54	-4,878.58	-5,208.53	-5,560.80	-5,936.88
UFCF	1,430.97	722.20	1,751.58	34.53	1,470.38	1,485.30	1,451.72	1,549.91	1,654.73	1,766.64
WACC
PV UFCF						1,414.84	1,317.26	1,339.63	1,362.39	1,385.53
SUM PV UFCF										6,819.65

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.98
Free cash flow (t + 1)	1,801.97
Terminal Value	60,468.90
Present Value of Terminal Value	47,424.12

Intrinsic Value

Enterprise Value	54,243.76
Net Debt	25,141
Equity Value	29,102.76
Shares Outstanding	1,351
Equity Value Per Share	21.54