Discounted Cash Flow (DCF) Analysis Levered
Baidu, Inc. (BIDU)
$135.2
+1.80 (+1.35%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 16,364.32 | 17,186.08 | 17,131.84 | 19,918.88 | 19,788 | 20,793.09 | 21,849.23 | 22,959.02 | 24,125.18 | 25,350.56 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 5,754.72 | 4,553.28 | 3,872 | 3,219.52 | 4,187.20 | 5,056.25 | 5,313.07 | 5,582.94 | 5,866.51 | 6,164.49 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -3,577.92 | -3,059.36 | -852.96 | -1,798.40 | -2,655.20 | -2,790.07 | -2,931.78 | -3,080.70 | -3,237.17 | -3,401.60 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 2,176.80 | 1,493.92 | 3,019.04 | 1,421.12 | 1,532 | 2,266.19 | 2,381.29 | 2,502.24 | 2,629.34 | 2,762.89 |
Weighted Average Cost Of Capital
| Share price | $ 135.2 |
|---|---|
| Beta | 0.670 |
| Diluted Shares Outstanding | 351.13 |
| Cost of Debt | |
| Tax Rate | 25.25 |
| After-tax Cost of Debt | 2.38% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.907 |
| Total Debt | 14,616.64 |
| Total Equity | 47,472.10 |
| Total Capital | 62,088.74 |
| Debt Weighting | 23.54 |
| Equity Weighting | 76.46 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 16,364.32 | 17,186.08 | 17,131.84 | 19,918.88 | 19,788 | 20,793.09 | 21,849.23 | 22,959.02 | 24,125.18 | 25,350.56 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 5,754.72 | 4,553.28 | 3,872 | 3,219.52 | 4,187.20 | 5,056.25 | 5,313.07 | 5,582.94 | 5,866.51 | 6,164.49 |
| Capital Expenditure | -3,577.92 | -3,059.36 | -852.96 | -1,798.40 | -2,655.20 | -2,790.07 | -2,931.78 | -3,080.70 | -3,237.17 | -3,401.60 |
| Free Cash Flow | 2,176.80 | 1,493.92 | 3,019.04 | 1,421.12 | 1,532 | 2,266.19 | 2,381.29 | 2,502.24 | 2,629.34 | 2,762.89 |
| WACC | ||||||||||
| PV LFCF | 1,911.38 | 1,897.64 | 1,884 | 1,870.46 | 1,857.01 | |||||
| SUM PV LFCF | 10,552.93 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.84 |
| Free cash flow (t + 1) | 2,818.15 |
| Terminal Value | 73,389.34 |
| Present Value of Terminal Value | 55,256.56 |
Intrinsic Value
| Enterprise Value | 65,809.48 |
|---|---|
| Net Debt | 6,111.68 |
| Equity Value | 59,697.80 |
| Shares Outstanding | 351.13 |
| Equity Value Per Share | 170.02 |