Discounted Cash Flow (DCF) Analysis Levered

Baidu, Inc. (BIDU)

$139.09

+2.90 (+2.13%)
All numbers are in Millions, Currency in USD
Stock DCF: 224.87 | 139.09 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 13,569.4416,364.3217,186.0817,131.8419,918.8821,989.0124,274.2726,797.0429,58232,656.39
Revenue (%)
Operating Cash Flow 5,260.805,754.724,553.283,8723,219.526,121.486,757.677,459.988,235.289,091.15
Operating Cash Flow (%)
Capital Expenditure -2,232.16-3,577.92-3,059.36-852.96-3,042.32-3,358.50-3,707.55-4,092.86-4,518.22-4,987.79
Capital Expenditure (%)
Free Cash Flow 3,028.642,176.801,493.923,019.04177.202,762.973,050.123,367.123,717.054,103.36

Weighted Average Cost Of Capital

Share price $ 139.09
Beta 0.902
Diluted Shares Outstanding 351.75
Cost of Debt
Tax Rate 5.12
After-tax Cost of Debt 3.55%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.999
Total Debt 14,641.12
Total Equity 48,924.91
Total Capital 63,566.03
Debt Weighting 23.03
Equity Weighting 76.97
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 13,569.4416,364.3217,186.0817,131.8419,918.8821,989.0124,274.2726,797.0429,58232,656.39
Operating Cash Flow 5,260.805,754.724,553.283,8723,219.526,121.486,757.677,459.988,235.289,091.15
Capital Expenditure -2,232.16-3,577.92-3,059.36-852.96-3,042.32-3,358.50-3,707.55-4,092.86-4,518.22-4,987.79
Free Cash Flow 3,028.642,176.801,493.923,019.04177.202,762.973,050.123,367.123,717.054,103.36
WACC
PV LFCF 2,601.672,704.392,811.152,922.143,037.51
SUM PV LFCF 14,076.86

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.20
Free cash flow (t + 1) 4,185.43
Terminal Value 99,653.02
Present Value of Terminal Value 73,767.98

Intrinsic Value

Enterprise Value 87,844.84
Net Debt 8,745.12
Equity Value 79,099.72
Shares Outstanding 351.75
Equity Value Per Share 224.87