Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Enterprise Products Partners L.P. (EPD)

Company Dividend Discount ModelIndustry: Oil & Gas MidstreamSector: Energy

Valuation Snapshot

Stable Growth$45.28 - $91.66$63.21
Multi-Stage$57.52 - $62.94$60.18
Blended Fair Value$61.69
Current Price$31.27
Upside97.29%
DecisionBuy

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 Rate7.21%7.21%7.21%
Growth Rate2.43%3.43%4.43%
Fair Value$45.28$63.21$91.66
Upside / Downside44.79%102.13%193.13%

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 Rate7.21%7.21%7.21%
Growth Rate2.43%3.43%4.43%
Year 1 PV (M)4,539.944,584.264,628.58
Year 2 PV (M)4,442.294,529.464,617.47
Year 3 PV (M)4,344.324,472.814,603.81
Year 4 PV (M)4,246.234,414.504,587.73
Year 5 PV (M)4,148.254,354.744,569.37
PV of Terminal Value (M)104,209.54109,396.91114,788.83
Equity Value (M)125,930.56131,752.68137,795.79
Shares Outstanding (M)2,189.252,189.252,189.25
Fair Value$57.52$60.18$62.94
Upside / Downside83.95%92.46%101.29%

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