Discounted Cash Flow (DCF) Analysis Levered

eBay Inc. (EBAY)

$43.13

-0.79 (-1.80%)

All numbers are in Millions, Currency in USD

Stock DCF: 35.85 | 43.13 | overvalue

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	10,746	10,479	10,271	10,420	9,795	9,574.20	9,358.37	9,147.41	8,941.21	8,739.65
Revenue (%)
Operating Cash Flow	2,658	3,114	2,419	2,657	2,254	2,422.54	2,367.93	2,314.55	2,262.37	2,211.37
Operating Cash Flow (%)
Capital Expenditure	-651	-552	-494	-444	-449	-478.33	-467.55	-457.01	-446.71	-436.64
Capital Expenditure (%)
Free Cash Flow	2,007	2,562	1,925	2,213	1,805	1,944.20	1,900.38	1,857.54	1,815.66	1,774.73

Weighted Average Cost Of Capital

Share price	$ 43.13
Beta	1.349
Diluted Shares Outstanding	558
Cost of Debt
Tax Rate	20.42
After-tax Cost of Debt	1.42%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.805
Total Debt	9,289
Total Equity	24,066.54
Total Capital	33,355.54
Debt Weighting	27.85
Equity Weighting	72.15
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	10,746	10,479	10,271	10,420	9,795	9,574.20	9,358.37	9,147.41	8,941.21	8,739.65
Operating Cash Flow	2,658	3,114	2,419	2,657	2,254	2,422.54	2,367.93	2,314.55	2,262.37	2,211.37
Capital Expenditure	-651	-552	-494	-444	-449	-478.33	-467.55	-457.01	-446.71	-436.64
Free Cash Flow	2,007	2,562	1,925	2,213	1,805	1,944.20	1,900.38	1,857.54	1,815.66	1,774.73
WACC
PV LFCF						1,797.03	1,623.55	1,466.82	1,325.22	1,197.29
SUM PV LFCF										7,409.90

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.19
Free cash flow (t + 1)	1,810.23
Terminal Value	29,244.41
Present Value of Terminal Value	19,729.10

Intrinsic Value

Enterprise Value	27,138.99
Net Debt	7,135
Equity Value	20,003.99
Shares Outstanding	558
Equity Value Per Share	35.85