DCF Tool

MMP

Magellan Midstream Partners L.P. – Pipeline Transportation of Crude Oil
Magellan Midstream Partners, L.P. is a publicly traded partnership that primarily transports, stores and distributes refined petroleum products and crude oil. The partnership owns the longest refined petroleum products pipeline system in the country, with access to nearly 50% of the nation's refining capacity, and can store more than 100 million barrels of petroleum products such as gasoline, diesel fuel and crude oil.
Analysis Results
Intrinsic Value $346.67
Latest Price $48.51
Relative Value 86% 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 18.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 18.8%, 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 1.57 1.49
2023 1.87 1.67
2024 2.22 1.88
2025 2.63 2.12
2026 3.12 2.38
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 88.5 billion. This corresponds to a present value of 63.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 9.54 billion. Adding in the terminal value gives a total present value of 73.3 billion.

There are presently 212.0 million outstanding shares, so the intrinsic value per share is 346.67.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 843,200,000
Current Cash 2,000,000
Current Liabilities 679,600,000
Current Debt 0
Non-Cash Working Capital (NCWC) 161,600,000
Change in NCWC 328,017,000
EBIT 1,106,400,000
Tax Provision 2,300,000
Depreciation and Amortization 227,900,000
Capital Expenditure -148,600,000
Unlevered Free Cash Flow 1,510,994,209
Current Assets 405,193,000
Current Cash 13,036,000
Current Liabilities 558,574,000
Current Debt 0
Non-Cash Working Capital (NCWC) -166,417,000
Change in NCWC 99,081,000
EBIT 1,034,002,000
Tax Provision 2,934,000
Depreciation and Amortization 258,676,000
Capital Expenditure -439,574,000
Unlevered Free Cash Flow 948,484,834
Current Assets 459,408,000
Current Cash 58,030,000
Current Liabilities 666,876,000
Current Debt 0
Non-Cash Working Capital (NCWC) -265,498,000
Change in NCWC -76,491,000
EBIT 1,200,729,000
Tax Provision 1,437,000
Depreciation and Amortization 246,134,000
Capital Expenditure -943,990,000
Unlevered Free Cash Flow 424,694,167
Current Assets 646,343,000
Current Cash 218,283,000
Current Liabilities 676,556,000
Current Debt 59,489,000
Non-Cash Working Capital (NCWC) -189,007,000
Change in NCWC -39,242,000
EBIT 1,194,581,000
Tax Provision 71,000
Depreciation and Amortization 265,077,000
Capital Expenditure -552,257,000
Unlevered Free Cash Flow 868,095,420
Current Assets 611,839,000
Current Cash 176,068,000
Current Liabilities 836,510,000
Current Debt 250,974,000
Non-Cash Working Capital (NCWC) -149,765,000
Change in NCWC -23,802,000
EBIT 1,052,713,000
Tax Provision 3,830,000
Depreciation and Amortization 196,630,000
Capital Expenditure -558,669,000
Unlevered Free Cash Flow 662,255,477
Current Assets 370,394,000
Current Cash 14,701,000
Current Liabilities 481,656,000
Current Debt 0
Non-Cash Working Capital (NCWC) -125,963,000
Change in NCWC 26,651,000
EBIT 935,052,000
Tax Provision 3,218,000
Depreciation and Amortization 178,142,000
Capital Expenditure -674,159,000
Unlevered Free Cash Flow 461,952,701
Current Assets 338,854,000
Current Cash 28,731,000
Current Liabilities 713,072,000
Current Debt 250,335,000
Non-Cash Working Capital (NCWC) -152,614,000
Change in NCWC -2,063,000
EBIT 963,620,000
Tax Provision 2,336,000
Depreciation and Amortization 166,812,000
Capital Expenditure -621,151,000
Unlevered Free Cash Flow 504,477,730
Current Assets 402,667,000
Current Cash 17,063,000
Current Liabilities 536,155,000
Current Debt 0
Non-Cash Working Capital (NCWC) -150,551,000
Change in NCWC -133,744,000
EBIT 974,231,000
Tax Provision 4,620,000
Depreciation and Amortization 161,741,000
Capital Expenditure -366,445,000
Unlevered Free Cash Flow 630,451,002
Current Assets 396,733,000
Current Cash 25,235,000
Current Liabilities 638,276,000
Current Debt 249,971,000
Non-Cash Working Capital (NCWC) -16,807,000
Change in NCWC 3,813,000
EBIT 705,056,000
Tax Provision 4,613,000
Depreciation and Amortization 142,230,000
Capital Expenditure -383,757,000
Unlevered Free Cash Flow 461,799,828
Current Assets 700,278,000
Current Cash 328,278,000
Current Liabilities 392,620,000
Current Debt 0
Non-Cash Working Capital (NCWC) -20,620,000
Change in NCWC -112,135,000
EBIT 552,058,000
Tax Provision 2,622,000
Depreciation and Amortization 128,012,000
Capital Expenditure -354,168,000
Unlevered Free Cash Flow 210,464,416

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