DCF Tool


Equitrans Midstream Corporation – Pipeline Transportation of Natural Gas
in november 2018, equitrans midstream corporation became a publicly traded, standalone midstream company – and began trading on the nyse under the ticker symbol etrn. since that time, equitrans has set its vision to be the premier midstream services company in north america, providing safe, reliable, and innovative infrastructure solutions for the energy industry. our principal assets located throughout the prolific appalachian basin, along with several growth projects, distinctively position us to meet the growing energy demands of the united states.throughout our operations, we conduct business to a standard that is consistent with our five core values of safety; integrity; collaboration; transparency; and excellence. these core values are the foundation of our company, acting as the principles that guide our behaviors and decisions. each and every day, we operate with integrity, accountability, and transparency to:– deliver sustained value for our customers and shareholders– provide
Analysis Results
Intrinsic Value $54.71
Latest Price $9.60
Relative Value 82% undervalued
Thoughts on this result? Let us know.
Cash Flow (Millions)
Analysis Parameters
New Ticker
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 4.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.6%, 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 (million) Present value (million)
2023 798 756
2024 834 749
2025 872 742
2026 912 736
2027 954 729
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 27600 million. This corresponds to a present value of 20000 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3710 million. Adding in the terminal value gives a total present value of 23700 million.

There are presently 433.0 million outstanding shares, so the intrinsic value per share is 54.71.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 389,702,000
Current Cash 67,898,000
Current Liabilities 413,310,000
Current Debt 98,830,000
Non-Cash Working Capital (NCWC) 7,324,000
Change in NCWC 62,732,000
EBIT 737,762,000
Tax Provision 6,444,000
Depreciation and Amortization 337,014,000
Capital Expenditure -376,661,000
Unlevered Free Cash Flow 760,847,000
Current Assets 446,829,000
Current Cash 134,661,000
Current Liabilities 367,576,000
Current Debt 0
Non-Cash Working Capital (NCWC) -55,408,000
Change in NCWC -116,744,000
EBIT 707,320,000
Tax Provision -345,091,000
Depreciation and Amortization 335,223,000
Capital Expenditure -290,521,000
Unlevered Free Cash Flow 635,278,000
Current Assets 561,737,000
Current Cash 208,023,000
Current Liabilities 594,878,000
Current Debt 302,500,000
Non-Cash Working Capital (NCWC) 61,336,000
Change in NCWC 104,403,000
EBIT 1,137,772,000
Tax Provision 105,331,000
Depreciation and Amortization 322,808,000
Capital Expenditure -462,031,000
Unlevered Free Cash Flow 941,737,723
Current Assets 375,212,000
Current Cash 88,322,000
Current Liabilities 335,957,000
Current Debt 6,000,000
Non-Cash Working Capital (NCWC) -43,067,000
Change in NCWC 225,722,000
EBIT 1,234,617,000
Tax Provision 50,704,000
Depreciation and Amortization 280,622,000
Capital Expenditure -967,369,000
Unlevered Free Cash Flow 773,592,000
Current Assets 568,839,000
Current Cash 294,172,000
Current Liabilities 549,456,000
Current Debt 6,000,000
Non-Cash Working Capital (NCWC) -268,789,000
Change in NCWC 103,593,000
EBIT 1,052,247,000
Tax Provision 83,142,000
Depreciation and Amortization 217,368,000
Capital Expenditure -865,882,000
Unlevered Free Cash Flow 360,147,124

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.