Discounted Cash Flow (DCF) Analysis Levered
Alphabet Inc. (GOOG)
$99.35
-8.69 (-8.04%)
All numbers are in Millions, Currency in USD
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 | 136,819 | 161,857 | 182,527 | 257,637 | 282,836 | 340,818.45 | 410,687.52 | 494,880.01 | 596,332.29 | 718,582.66 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 47,971 | 54,520 | 65,124 | 91,652 | 91,495 | 117,478.78 | 141,562.37 | 170,583.19 | 205,553.39 | 247,692.61 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -25,139 | -23,548 | -22,281 | -24,640 | -31,485 | -44,868.92 | -54,067.22 | -65,151.20 | -78,507.44 | -94,601.77 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 22,832 | 30,972 | 42,843 | 67,012 | 60,010 | 72,609.86 | 87,495.15 | 105,431.99 | 127,045.95 | 153,090.85 |
Weighted Average Cost Of Capital
| Share price | $ 99.35 |
|---|---|
| Beta | 1.086 |
| Diluted Shares Outstanding | 13,553.47 |
| Cost of Debt | |
| Tax Rate | 15.92 |
| After-tax Cost of Debt | 4.20% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.765 |
| Total Debt | 27,202 |
| Total Equity | 1,346,537.63 |
| Total Capital | 1,373,739.63 |
| Debt Weighting | 1.98 |
| Equity Weighting | 98.02 |
| 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 | 136,819 | 161,857 | 182,527 | 257,637 | 282,836 | 340,818.45 | 410,687.52 | 494,880.01 | 596,332.29 | 718,582.66 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 47,971 | 54,520 | 65,124 | 91,652 | 91,495 | 117,478.78 | 141,562.37 | 170,583.19 | 205,553.39 | 247,692.61 |
| Capital Expenditure | -25,139 | -23,548 | -22,281 | -24,640 | -31,485 | -44,868.92 | -54,067.22 | -65,151.20 | -78,507.44 | -94,601.77 |
| Free Cash Flow | 22,832 | 30,972 | 42,843 | 67,012 | 60,010 | 72,609.86 | 87,495.15 | 105,431.99 | 127,045.95 | 153,090.85 |
| WACC | ||||||||||
| PV LFCF | 66,816.84 | 74,090.86 | 82,156.78 | 91,100.79 | 101,018.49 | |||||
| SUM PV LFCF | 415,183.76 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.67 |
| Free cash flow (t + 1) | 156,152.66 |
| Terminal Value | 2,341,119.37 |
| Present Value of Terminal Value | 1,544,810.54 |
Intrinsic Value
| Enterprise Value | 1,959,994.30 |
|---|---|
| Net Debt | 5,323 |
| Equity Value | 1,954,671.30 |
| Shares Outstanding | 13,553.47 |
| Equity Value Per Share | 144.22 |