DCF Tool

MPLX

MPLX LP – Pipeline Transportation of Natural Gas
MPLX is a diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets, and provides fuels distribution services. MPLX's assets include a network of crude oil and refined product pipelines; an inland marine business; light-product terminals; storage caverns; refinery tanks, docks, loading racks, and associated piping; and crude and light-product marine terminals. The company also owns crude oil and natural gas gathering systems and pipelines as well as natural gas and NGL processing and fractionation facilities in key U.S. supply basins.
Analysis Results
Intrinsic Value $215.25
Latest Price $31.75
Relative Value 85% 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 23.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 23.1%, 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 4.21 3.98
2023 5.18 4.64
2024 6.38 5.4
2025 7.86 6.29
2026 9.68 7.32
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 263 billion. This corresponds to a present value of 188 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 27.6 billion. Adding in the terminal value gives a total present value of 216 billion.

There are presently 1.0 billion outstanding shares, so the intrinsic value per share is 215.25.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,507,000,000
Current Cash 13,000,000
Current Liabilities 3,348,000,000
Current Debt 499,000,000
Non-Cash Working Capital (NCWC) -1,355,000,000
Change in NCWC -1,533,000,000
EBIT 4,034,000,000
Tax Provision 1,000,000
Depreciation and Amortization 1,287,000,000
Capital Expenditure -529,000,000
Unlevered Free Cash Flow 3,257,704,143
Current Assets 1,515,000,000
Current Cash 15,000,000
Current Liabilities 2,086,000,000
Current Debt 764,000,000
Non-Cash Working Capital (NCWC) 178,000,000
Change in NCWC 841,000,000
EBIT 2,413,000,000
Tax Provision 2,000,000
Depreciation and Amortization 1,377,000,000
Capital Expenditure -1,183,000,000
Unlevered Free Cash Flow 3,448,000,000
Current Assets 1,484,000,000
Current Cash 15,000,000
Current Liabilities 2,132,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -663,000,000
Change in NCWC -306,000,000
EBIT 3,574,000,000
Tax Provision 0
Depreciation and Amortization 1,254,000,000
Capital Expenditure -2,408,000,000
Unlevered Free Cash Flow 2,114,000,000
Current Assets 897,000,000
Current Cash 68,000,000
Current Liabilities 1,186,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -357,000,000
Change in NCWC 393,000,000
EBIT 2,503,000,000
Tax Provision 8,000,000
Depreciation and Amortization 766,000,000
Capital Expenditure -1,919,000,000
Unlevered Free Cash Flow 1,732,129,207
Current Assets 559,000,000
Current Cash 5,000,000
Current Liabilities 1,304,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -750,000,000
Change in NCWC -552,000,000
EBIT 1,191,000,000
Tax Provision 1,000,000
Depreciation and Amortization 683,000,000
Capital Expenditure -1,411,000,000
Unlevered Free Cash Flow -90,422,939

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