DCF Tool

EPD

Enterprise Products Partners L P – All Other Business Support Services
Enterprise Products Partners L.P. is one of the largest publicly traded partnerships and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals. Its services include: natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage and export and import terminals; crude oil gathering, transportation, storage and export and import terminals; petrochemical and refined products transportation, storage, export and import terminals and related services; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems. The partnership's assets include approximately 50,000 miles of pipelines; 260 million barrels of storage capacity for NGLs, crude oil, refined products and petrochemicals; and 14 billion cubic feet of natural gas storage capacity.
Analysis Results
Intrinsic Value $142.17
Latest Price $26.76
Relative Value 81% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 18.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 18.6%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 6.06 5.79
2023 7.19 6.55
2024 8.53 7.42
2025 10.1 8.4
2026 12.0 9.51
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 360 billion. This corresponds to a present value of 272 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 37.7 billion. Adding in the terminal value gives a total present value of 310 billion.

There are presently 2.18 billion outstanding shares, so the intrinsic value per share is 142.17.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 13,269,400,000
Current Cash 2,819,400,000
Current Liabilities 11,624,500,000
Current Debt 1,399,800,000
Non-Cash Working Capital (NCWC) 225,300,000
Change in NCWC -961,200,000
EBIT 6,103,700,000
Tax Provision 70,000,000
Depreciation and Amortization 2,139,800,000
Capital Expenditure -2,223,200,000
Unlevered Free Cash Flow 4,970,554,417
Current Assets 9,909,400,000
Current Cash 1,059,900,000
Current Liabilities 8,988,000,000
Current Debt 1,325,000,000
Non-Cash Working Capital (NCWC) 1,186,500,000
Change in NCWC 806,100,000
EBIT 5,035,100,000
Tax Provision -124,300,000
Depreciation and Amortization 2,071,900,000
Capital Expenditure -3,287,900,000
Unlevered Free Cash Flow 4,625,200,000
Current Assets 7,862,900,000
Current Cash 334,700,000
Current Liabilities 9,129,700,000
Current Debt 1,981,900,000
Non-Cash Working Capital (NCWC) 380,400,000
Change in NCWC 331,900,000
EBIT 6,078,700,000
Tax Provision 45,600,000
Depreciation and Amortization 1,949,300,000
Capital Expenditure -4,531,700,000
Unlevered Free Cash Flow 3,769,631,166
Current Assets 6,060,700,000
Current Cash 344,800,000
Current Liabilities 7,167,500,000
Current Debt 1,500,100,000
Non-Cash Working Capital (NCWC) 48,500,000
Change in NCWC -12,700,000
EBIT 5,408,600,000
Tax Provision 60,300,000
Depreciation and Amortization 1,791,600,000
Capital Expenditure -4,223,200,000
Unlevered Free Cash Flow 2,888,432,646
Current Assets 6,506,400,000
Current Cash 5,100,000
Current Liabilities 9,295,100,000
Current Debt 2,855,000,000
Non-Cash Working Capital (NCWC) 61,200,000
Change in NCWC -730,200,000
EBIT 3,928,900,000
Tax Provision 25,700,000
Depreciation and Amortization 1,644,000,000
Capital Expenditure -3,147,900,000
Unlevered Free Cash Flow 1,659,755,842
Current Assets 6,528,200,000
Current Cash 63,100,000
Current Liabilities 8,250,500,000
Current Debt 2,576,800,000
Non-Cash Working Capital (NCWC) 791,400,000
Change in NCWC 1,800,100,000
EBIT 3,580,700,000
Tax Provision 23,400,000
Depreciation and Amortization 1,552,000,000
Capital Expenditure -3,025,100,000
Unlevered Free Cash Flow 3,875,178,504
Current Assets 4,313,000,000
Current Cash 19,000,000
Current Liabilities 7,166,600,000
Current Debt 1,863,900,000
Non-Cash Working Capital (NCWC) -1,008,700,000
Change in NCWC -757,700,000
EBIT 3,540,200,000
Tax Provision -2,500,000
Depreciation and Amortization 1,516,000,000
Capital Expenditure -3,830,700,000
Unlevered Free Cash Flow 467,800,000
Current Assets 5,490,700,000
Current Cash 74,400,000
Current Liabilities 7,873,700,000
Current Debt 2,206,400,000
Non-Cash Working Capital (NCWC) -251,000,000
Change in NCWC -103,800,000
EBIT 3,775,700,000
Tax Provision 23,100,000
Depreciation and Amortization 1,360,500,000
Capital Expenditure -2,892,900,000
Unlevered Free Cash Flow 2,108,967,664
Current Assets 7,023,400,000
Current Cash 56,900,000
Current Liabilities 8,238,700,000
Current Debt 1,125,000,000
Non-Cash Working Capital (NCWC) -147,200,000
Change in NCWC 234,900,000
EBIT 3,467,300,000
Tax Provision 57,500,000
Depreciation and Amortization 1,217,600,000
Capital Expenditure -3,408,200,000
Unlevered Free Cash Flow 1,436,778,356
Current Assets 5,843,100,000
Current Cash 16,100,000
Current Liabilities 7,755,700,000
Current Debt 1,546,600,000
Non-Cash Working Capital (NCWC) -382,100,000
Change in NCWC 501,400,000
EBIT 3,109,200,000
Tax Provision -17,200,000
Depreciation and Amortization 1,104,900,000
Capital Expenditure -3,621,900,000
Unlevered Free Cash Flow 1,093,600,000

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