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Enterprise Products Partners L.P. (EPD)

Company Dividend Discount ModelIndustry: Oil & Gas MidstreamSector: Energy

Valuation Snapshot

Stable Growth$32.58 - $54.91$42.35
Multi-Stage$39.70 - $43.32$41.47
Blended Fair Value$41.91
Current Price$31.27
Upside34.03%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS3.28%5.51%2.061.961.871.801.781.751.701.631.511.34
YoY Growth--4.91%5.03%4.19%1.01%1.33%3.03%4.40%8.16%12.12%11.58%
Dividend Yield--6.04%6.69%7.22%6.96%8.07%12.27%5.80%6.66%5.46%5.46%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)5,792.00
(-) Cash Dividends Paid (M)4,637.00
(=) Cash Retained (M)1,155.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,158.40724.00434.40
Cash Retained (M)1,155.001,155.001,155.00
(-) Cash Required (M)-1,158.40-724.00-434.40
(=) Excess Retained (M)-3.40431.00720.60
(/) Shares Outstanding (M)2,189.252,189.252,189.25
(=) Excess Retained per Share0.000.200.33
LTM Dividend per Share2.122.122.12
(+) Excess Retained per Share0.000.200.33
(=) Adjusted Dividend2.122.312.45
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate2.43%3.43%4.43%
Fair Value$32.58$42.35$54.91
Upside / Downside4.19%35.42%75.60%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)5,792.005,990.436,195.666,407.936,627.466,854.527,060.15
Payout Ratio80.06%82.05%84.04%86.02%88.01%90.00%92.50%
Projected Dividends (M)4,637.004,914.975,206.545,512.325,832.946,169.076,530.64

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate2.43%3.43%4.43%
Year 1 PV (M)4,462.274,505.844,549.40
Year 2 PV (M)4,291.614,375.824,460.84
Year 3 PV (M)4,125.164,247.174,371.55
Year 4 PV (M)3,963.054,120.104,281.77
Year 5 PV (M)3,805.363,994.794,191.68
PV of Terminal Value (M)66,256.5969,554.7272,982.92
Equity Value (M)86,904.0490,798.4394,838.17
Shares Outstanding (M)2,189.252,189.252,189.25
Fair Value$39.70$41.47$43.32
Upside / Downside26.95%32.63%38.54%

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