DCF Tool

OKE

Oneok Inc. – Pipeline Transportation of Natural Gas
oneok, inc. is a diversified energy company with operations in 14 states. we are the general partner of oneok partners, l.p., one of the largest publicly traded master limited partnerships, which owns one of the nation's premier natural gas liquids (ngl) systems, connecting ngl supply in the mid-continent, permian and rocky mountain regions with key market centers and is a leader in the gathering, processing, storage and transportation of natural gas in the u.s. oneok is a fortune 500 company and is included in standard & poor's (s&p) 500 stock index.
Analysis Results
Intrinsic Value $225.68
Latest Price $78.70
Relative Value 65% 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 17.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 17.1%, 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)
2024 2.61 2.51
2025 3.05 2.82
2026 3.57 3.17
2027 4.18 3.57
2028 4.9 4.01
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 147 billion. This corresponds to a present value of 116 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 16.1 billion. Adding in the terminal value gives a total present value of 132 billion.

There are presently 584.0 million outstanding shares, so the intrinsic value per share is 225.68.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,108,000,000
Current Cash 338,000,000
Current Liabilities 3,452,000,000
Current Debt 484,000,000
Non-Cash Working Capital (NCWC) -198,000,000
Change in NCWC -398,921,000
EBIT 4,432,000,000
Tax Provision 838,000,000
Depreciation and Amortization 769,000,000
Capital Expenditure -1,595,000,000
Unlevered Free Cash Flow 2,145,021,236
Current Assets 2,547,775,000
Current Cash 220,227,000
Current Liabilities 3,051,627,000
Current Debt 925,000,000
Non-Cash Working Capital (NCWC) 200,921,000
Change in NCWC 261,743,000
EBIT 2,955,139,000
Tax Provision 527,424,000
Depreciation and Amortization 626,132,000
Capital Expenditure -1,202,057,000
Unlevered Free Cash Flow 1,948,131,584
Current Assets 2,374,374,000
Current Cash 146,391,000
Current Liabilities 3,184,619,000
Current Debt 895,814,000
Non-Cash Working Capital (NCWC) -60,822,000
Change in NCWC -69,204,000
EBIT 2,717,385,000
Tax Provision 484,498,000
Depreciation and Amortization 621,701,000
Capital Expenditure -696,854,000
Unlevered Free Cash Flow 1,909,503,686
Current Assets 1,869,775,000
Current Cash 524,496,000
Current Liabilities 1,344,547,000
Current Debt 7,650,000
Non-Cash Working Capital (NCWC) 8,382,000
Change in NCWC 349,705,000
EBIT 2,110,471,000
Tax Provision 189,507,000
Depreciation and Amortization 578,662,000
Capital Expenditure -2,195,381,000
Unlevered Free Cash Flow 344,963,852
Current Assets 1,470,334,000
Current Cash 20,958,000
Current Liabilities 2,020,298,000
Current Debt 229,599,000
Non-Cash Working Capital (NCWC) -341,323,000
Change in NCWC -127,194,000
EBIT 2,071,469,000
Tax Provision 372,414,000
Depreciation and Amortization 476,535,000
Capital Expenditure -3,848,349,000
Unlevered Free Cash Flow -1,894,800,212
Current Assets 1,398,632,000
Current Cash 11,975,000
Current Liabilities 2,108,436,000
Current Debt 507,650,000
Non-Cash Working Capital (NCWC) -214,129,000
Change in NCWC -321,382,000
EBIT 1,993,246,000
Tax Provision 362,903,000
Depreciation and Amortization 428,557,000
Capital Expenditure -2,141,475,000
Unlevered Free Cash Flow -517,592,819
Current Assets 1,764,458,000
Current Cash 37,193,000
Current Liabilities 2,667,335,000
Current Debt 1,047,323,000
Non-Cash Working Capital (NCWC) 107,253,000
Change in NCWC 242,218,000
EBIT 1,555,219,000
Tax Provision 447,282,000
Depreciation and Amortization 406,335,000
Capital Expenditure -512,393,000
Unlevered Free Cash Flow 1,023,026,966
Current Assets 1,429,684,000
Current Cash 248,875,000
Current Liabilities 2,836,701,000
Current Debt 1,520,927,000
Non-Cash Working Capital (NCWC) -134,965,000
Change in NCWC -31,280,000
EBIT 1,415,731,000
Tax Provision 212,406,000
Depreciation and Amortization 391,585,000
Capital Expenditure -624,634,000
Unlevered Free Cash Flow 837,494,306
Current Assets 975,210,000
Current Cash 97,619,000
Current Liabilities 1,638,266,000
Current Debt 656,990,000
Non-Cash Working Capital (NCWC) -103,685,000
Change in NCWC 88,282,000
EBIT 1,199,503,000
Tax Provision 136,600,000
Depreciation and Amortization 354,620,000
Capital Expenditure -1,188,312,000
Unlevered Free Cash Flow 140,125,487
Current Assets 1,307,244,000
Current Cash 172,812,000
Current Liabilities 2,392,345,000
Current Debt 1,065,946,000
Non-Cash Working Capital (NCWC) -191,967,000
Change in NCWC -292,167,000
EBIT 1,177,975,000
Tax Provision 151,158,000
Depreciation and Amortization 306,038,000
Capital Expenditure -1,779,150,000
Unlevered Free Cash Flow -804,484,398
Current Assets 2,370,802,000
Current Cash 149,313,000
Current Liabilities 2,696,407,000
Current Debt 575,118,000
Non-Cash Working Capital (NCWC) 100,200,000
Change in NCWC -89,895,000
EBIT 1,025,370,000
Tax Provision 163,382,000
Depreciation and Amortization 384,377,000
Capital Expenditure -2,256,585,000
Unlevered Free Cash Flow -1,163,015,954
Current Assets 2,764,660,000
Current Cash 589,596,000
Current Liabilities 2,812,994,000
Current Debt 828,025,000
Non-Cash Working Capital (NCWC) 190,095,000
Change in NCWC -17,213,000
EBIT 1,229,043,000
Tax Provision 215,195,000
Depreciation and Amortization 335,852,000
Capital Expenditure -1,866,153,000
Unlevered Free Cash Flow -598,512,324

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