Discounted Cash Flow (DCF) Analysis Unlevered

TC Energy Corporation (TRP.TO)

$58.78

-0.82 (-1.38%)
All numbers are in Millions, Currency in USD
Stock DCF: -42.62 | 58.78 | overvalue

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 13,44913,67913,25512,99913,38713,375.7613,364.5213,353.2913,342.0813,330.87
Revenue (%)
EBITDA 7,4828,6979,5759,5839,4488,981.708,974.158,966.628,959.098,951.56
EBITDA (%)
EBIT 5,4276,3477,1116,9936,9266,579.086,573.556,568.036,562.516,557
EBIT (%)
Depreciation 2,0552,3502,4642,5902,5222,402.622,400.602,398.592,396.572,394.56
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 1,0894461,3431,5306731,024.241,023.381,022.521,021.661,020.80
Total Cash (%)
Account Receivables 2,5222,6942,5752,2944,5112,921.742,919.292,916.832,914.382,911.94
Account Receivables (%)
Inventories 378431452629724524.83524.38523.94523.50523.06
Inventories (%)
Accounts Payable 2,8473,2243,3143,0574,1833,330.663,327.863,325.073,322.273,319.48
Accounts Payable (%)
Capital Expenditure -7,529-9,914-8,182-8,135-5,924-7,945.71-7,939.04-7,932.37-7,925.71-7,919.05
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 58.78
Beta 0.860
Diluted Shares Outstanding 974
Cost of Debt
Tax Rate 9.74
After-tax Cost of Debt 3.42%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.576
Total Debt 53,146
Total Equity 57,251.72
Total Capital 110,397.72
Debt Weighting 48.14
Equity Weighting 51.86
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 13,44913,67913,25512,99913,38713,375.7613,364.5213,353.2913,342.0813,330.87
EBITDA 7,4828,6979,5759,5839,4488,981.708,974.158,966.628,959.098,951.56
EBIT 5,4276,3477,1116,9936,9266,579.086,573.556,568.036,562.516,557
Tax Rate 4.51%6.25%20.19%9.61%9.74%10.06%10.06%10.06%10.06%10.06%
EBIAT 5,182.415,950.015,675.646,320.686,251.315,917.195,912.225,907.255,902.295,897.33
Depreciation 2,0552,3502,4642,5902,5222,402.622,400.602,398.592,396.572,394.56
Accounts Receivable --172119281-2,2171,589.262.452.452.452.45
Inventories --53-21-177-95199.170.440.440.440.44
Accounts Payable -37790-2571,126-852.34-2.80-2.80-2.79-2.79
Capital Expenditure -7,529-9,914-8,182-8,135-5,924-7,945.71-7,939.04-7,932.37-7,925.71-7,919.05
UFCF -291.59-1,461.99145.64622.681,663.311,310.19373.88373.57373.25372.94
WACC
PV UFCF 1,240.95335.41317.41300.38284.27
SUM PV UFCF 2,478.42

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.58
Free cash flow (t + 1) 380.40
Terminal Value 10,625.68
Present Value of Terminal Value 8,099.32

Intrinsic Value

Enterprise Value 10,577.74
Net Debt 52,093
Equity Value -41,515.26
Shares Outstanding 974
Equity Value Per Share -42.62