Discounted Cash Flow (DCF) Analysis Levered

eBay Inc. (EBAY)

$44.31

-0.31 (-0.69%)
All numbers are in Millions, Currency in USD
Stock DCF: 60.42 | 44.31 | 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 9,56710,74610,80010,27110,42010,664.3110,914.3611,170.2611,432.1711,700.21
Revenue (%)
Operating Cash Flow 3,1462,6583,1142,4192,6572,890.092,957.853,027.203,098.183,170.82
Operating Cash Flow (%)
Capital Expenditure -666-651-554-494-444-580.56-594.17-608.11-622.36-636.96
Capital Expenditure (%)
Free Cash Flow 2,4802,0072,5601,9252,2132,309.532,363.682,419.102,475.822,533.87

Weighted Average Cost Of Capital

Share price $ 44.31
Beta 1.147
Diluted Shares Outstanding 658
Cost of Debt
Tax Rate -3,319.10
After-tax Cost of Debt 2.85%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.202
Total Debt 9,425
Total Equity 29,155.98
Total Capital 38,580.98
Debt Weighting 24.43
Equity Weighting 75.57
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 9,56710,74610,80010,27110,42010,664.3110,914.3611,170.2611,432.1711,700.21
Operating Cash Flow 3,1462,6583,1142,4192,6572,890.092,957.853,027.203,098.183,170.82
Capital Expenditure -666-651-554-494-444-580.56-594.17-608.11-622.36-636.96
Free Cash Flow 2,4802,0072,5601,9252,2132,309.532,363.682,419.102,475.822,533.87
WACC
PV LFCF 2,160.662,068.781,980.811,896.581,815.93
SUM PV LFCF 9,922.75

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.89
Free cash flow (t + 1) 2,584.54
Terminal Value 52,853.68
Present Value of Terminal Value 37,878.24

Intrinsic Value

Enterprise Value 47,800.99
Net Debt 8,046
Equity Value 39,754.99
Shares Outstanding 658
Equity Value Per Share 60.42