Discounted Cash Flow (DCF) Analysis Levered

Texas Pacific Land Corporation (TPL)

$ 1530
38.01 (+2.55%)

Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 44.1155.2079.4159.91132.33300.22490.50302.55439.68638.96928.561,349.411,961
Revenue (%)
Operating Cash Flow 30.0738.8549.5740.9693.83191.65342.79204.85297.70432.62628.70913.651,327.74
Operating Cash Flow (%)
Capital Expenditure -0.05-0.05-0.22-0.98-18.75-9.38-74.58-5.09-19.95-29-42.14-61.24-89
Capital Expenditure (%)
Free Cash Flow 30.0138.8049.3539.9875.08182.27268.21199.77277.74403.62586.56852.411,238.75

Weighted Average Cost Of Capital

Share price $ 1,530
Beta 2.227
Diluted Shares Outstanding 7.76
Cost of Debt
Tax Rate 19.85
After-tax Cost of Debt 4.01%
Risk-Free Rate
Market Risk Premium
Cost of Equity 20.188
Total Debt -
Total Equity 11,866.92
Total Capital 11,866.92
Debt Weighting 0.00
Equity Weighting 100.00
Wacc

Build Up Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 44.1155.2079.4159.91132.33300.22490.50302.55439.68638.96928.561,349.411,961
Operating Cash Flow 30.0738.8549.5740.9693.83191.65342.79204.85297.70432.62628.70913.651,327.74
Capital Expenditure -0.05-0.05-0.22-0.98-18.75-9.38-74.58-5.09-19.95-29-42.14-61.24-89
Free Cash Flow 30.0138.8049.3539.9875.08182.27268.21199.77277.74403.62586.56852.411,238.75
WACC
PV LFCF 231.09279.41337.84408.48493.90
SUM PV LFCF 1,750.72

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 20.19
Free cash flow (t + 1) 1,288.30
Terminal Value 7,957.35
Present Value of Terminal Value 3,172.69

Intrinsic Value

Enterprise Value 4,923.40
Net Debt -281.05
Equity Value 5,204.45
Shares Outstanding 7.76
Equity Value Per Share 671.01