DCF Tool


Western Midstream Partners LP – Pipeline Transportation of Natural Gas
western gas holdings, llc is an oil and energy company located in 1201lake robbins dr, the woodlands, texas, united states.
Analysis Results
Intrinsic Value $334.65
Latest Price $26.85
Relative Value 92% undervalued
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Cash Flow (Billions)
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 35.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 35.2%, 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)
2023 2.41 2.25
2024 3.26 2.85
2025 4.4 3.6
2026 5.95 4.54
2027 8.05 5.74
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 165 billion. This corresponds to a present value of 110 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 19.0 billion. Adding in the terminal value gives a total present value of 129 billion.

There are presently 385.0 million outstanding shares, so the intrinsic value per share is 334.65.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 900,425,000
Current Cash 286,656,000
Current Liabilities 903,857,000
Current Debt 215,780,000
Non-Cash Working Capital (NCWC) -74,308,000
Change in NCWC 77,192,000
EBIT 1,504,797,000
Tax Provision 4,187,000
Depreciation and Amortization 582,365,000
Capital Expenditure -487,228,000
Unlevered Free Cash Flow 1,672,108,184
Current Assets 684,764,000
Current Cash 201,999,000
Current Liabilities 1,140,197,000
Current Debt 505,932,000
Non-Cash Working Capital (NCWC) -151,500,000
Change in NCWC -127,577,000
EBIT 1,366,770,000
Tax Provision -9,807,000
Depreciation and Amortization 551,629,000
Capital Expenditure -313,674,000
Unlevered Free Cash Flow 1,477,148,000
Current Assets 943,064,000
Current Cash 444,922,000
Current Liabilities 960,935,000
Current Debt 438,870,000
Non-Cash Working Capital (NCWC) -23,923,000
Change in NCWC 151,708,000
EBIT 1,515,185,000
Tax Provision 5,998,000
Depreciation and Amortization 491,086,000
Capital Expenditure -423,091,000
Unlevered Free Cash Flow 1,717,506,189
Current Assets 402,412,000
Current Cash 99,962,000
Current Liabilities 485,954,000
Current Debt 7,873,000
Non-Cash Working Capital (NCWC) -175,631,000
Change in NCWC 89,544,000
EBIT 1,239,028,000
Tax Provision 13,472,000
Depreciation and Amortization 483,255,000
Capital Expenditure -1,188,829,000
Unlevered Free Cash Flow 602,670,729
Current Assets 335,824,000
Current Cash 92,142,000
Current Liabilities 536,857,000
Current Debt 28,000,000
Non-Cash Working Capital (NCWC) -265,175,000
Change in NCWC -16,371,000
EBIT 852,390,000
Tax Provision 2,946,000
Depreciation and Amortization 337,536,000
Capital Expenditure -1,193,896,000
Unlevered Free Cash Flow -25,903,291
Current Assets 255,210,000
Current Cash 79,588,000
Current Liabilities 424,426,000
Current Debt 0
Non-Cash Working Capital (NCWC) -248,804,000
Change in NCWC -169,936,000
EBIT 720,503,000
Tax Provision 4,866,000
Depreciation and Amortization 290,874,000
Capital Expenditure -675,025,000
Unlevered Free Cash Flow 160,351,025

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