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	9,567	10,746	10,800	10,271	10,420	10,664.31	10,914.36	11,170.26	11,432.17	11,700.21
Revenue (%)
Operating Cash Flow	3,146	2,658	3,114	2,419	2,657	2,890.09	2,957.85	3,027.20	3,098.18	3,170.82
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	2,480	2,007	2,560	1,925	2,213	2,309.53	2,363.68	2,419.10	2,475.82	2,533.87

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	9,567	10,746	10,800	10,271	10,420	10,664.31	10,914.36	11,170.26	11,432.17	11,700.21
Operating Cash Flow	3,146	2,658	3,114	2,419	2,657	2,890.09	2,957.85	3,027.20	3,098.18	3,170.82
Capital Expenditure	-666	-651	-554	-494	-444	-580.56	-594.17	-608.11	-622.36	-636.96
Free Cash Flow	2,480	2,007	2,560	1,925	2,213	2,309.53	2,363.68	2,419.10	2,475.82	2,533.87
WACC
PV LFCF						2,160.66	2,068.78	1,980.81	1,896.58	1,815.93
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