Discounted Cash Flow (DCF) Analysis Levered

Meta Platforms, Inc. (FB)

$ 333.12
-7.94 (-2.33%)
Stock DCF: 1,383.18 | 333.12 | undervalue

Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 27,63840,65355,83870,69785,965114,473.35152,435.86202,987.78270,304.09359,944.35
Revenue (%)
Operating Cash Flow 16,10824,21629,27436,31438,74761,063.5281,313.85108,279.76144,188.30192,005.10
Operating Cash Flow (%)
Capital Expenditure -4,491-6,733-13,915-15,102-15,115-22,133.68-29,473.82-39,248.14-52,263.90-69,596.05
Capital Expenditure (%)
Free Cash Flow 11,61717,48315,35921,21223,63238,929.8451,840.0469,031.6291,924.40122,409.05

Weighted Average Cost Of Capital

Share price $ 333.12
Beta 1.268
Diluted Shares Outstanding 2,888
Cost of Debt
Tax Rate 12.16
After-tax Cost of Debt 4.39%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.465
Total Debt 10,654
Total Equity 962,050.56
Total Capital 972,704.56
Debt Weighting 1.10
Equity Weighting 98.90
Wacc

Build Up Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 27,63840,65355,83870,69785,965114,473.35152,435.86202,987.78270,304.09359,944.35
Operating Cash Flow 16,10824,21629,27436,31438,74761,063.5281,313.85108,279.76144,188.30192,005.10
Capital Expenditure -4,491-6,733-13,915-15,102-15,115-22,133.68-29,473.82-39,248.14-52,263.90-69,596.05
Free Cash Flow 11,61717,48315,35921,21223,63238,929.8451,840.0469,031.6291,924.40122,409.05
WACC
PV LFCF 36,237.4044,917.3555,676.4269,012.6285,543.23
SUM PV LFCF 291,387.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.43
Free cash flow (t + 1) 128,529.51
Terminal Value 5,289,280.13
Present Value of Terminal Value 3,696,312.58

Intrinsic Value

Enterprise Value 3,987,699.61
Net Debt -6,922
Equity Value 3,994,621.61
Shares Outstanding 2,888
Equity Value Per Share 1,383.18