Discounted Cash Flow (DCF) Analysis Levered

Futu Holdings Limited (FUTU)

$42.07

+0.94 (+2.29%)
All numbers are in Millions, Currency in USD
Stock DCF: 755,542.44 | 42.07 | 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 202.56561.75779.852,614.875,909.2614,439.8535,285.1886,222.80210,693.86514,851.11
Revenue (%)
Operating Cash Flow 1,855.334,470.171,969.4320,456.726,011.9782,257.89201,005.23491,175.991,200,236.692,932,896.03
Operating Cash Flow (%)
Capital Expenditure -7.41-18.79-118.34-44.65-70.46-724.28-1,769.86-4,324.82-10,568.13-25,824.26
Capital Expenditure (%)
Free Cash Flow 1,847.924,451.381,851.0920,412.075,941.5281,533.61199,235.37486,851.171,189,668.562,907,071.77

Weighted Average Cost Of Capital

Share price $ 42.07
Beta 0.241
Diluted Shares Outstanding 129.61
Cost of Debt
Tax Rate 11.78
After-tax Cost of Debt 5.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity 3.929
Total Debt 6,617.98
Total Equity 5,452.62
Total Capital 12,070.60
Debt Weighting 54.83
Equity Weighting 45.17
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 202.56561.75779.852,614.875,909.2614,439.8535,285.1886,222.80210,693.86514,851.11
Operating Cash Flow 1,855.334,470.171,969.4320,456.726,011.9782,257.89201,005.23491,175.991,200,236.692,932,896.03
Capital Expenditure -7.41-18.79-118.34-44.65-70.46-724.28-1,769.86-4,324.82-10,568.13-25,824.26
Free Cash Flow 1,847.924,451.381,851.0920,412.075,941.5281,533.61199,235.37486,851.171,189,668.562,907,071.77
WACC
PV LFCF 78,000.20182,341.09426,258.80996,465.312,329,437.17
SUM PV LFCF 4,012,502.57

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.53
Free cash flow (t + 1) 2,965,213.21
Terminal Value 117,202,102.98
Present Value of Terminal Value 93,914,067.88

Intrinsic Value

Enterprise Value 97,926,570.46
Net Debt 2,062.89
Equity Value 97,924,507.57
Shares Outstanding 129.61
Equity Value Per Share 755,542.44