Discounted Cash Flow (DCF) Analysis Levered

Alphabet Inc. (GOOG)

$97.6

-1.22 (-1.23%)
All numbers are in Millions, Currency in USD
Stock DCF: 154.11 | 97.6 | 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 110,855136,819161,857182,527257,637319,239.48395,571.46490,154.85607,353.68752,575.41
Revenue (%)
Operating Cash Flow 37,09147,97154,52065,12491,652110,749.23137,230170,042.48210,700.61261,080.32
Operating Cash Flow (%)
Capital Expenditure -13,184-25,139-23,548-22,281-24,640-42,514-52,679.34-65,275.27-80,882.96-100,222.54
Capital Expenditure (%)
Free Cash Flow 23,90722,83230,97242,84367,01268,235.2384,550.66104,767.21129,817.65160,857.79

Weighted Average Cost Of Capital

Share price $ 97.6
Beta 1.054
Diluted Shares Outstanding 13,553.47
Cost of Debt
Tax Rate 16.20
After-tax Cost of Debt 1.02%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.664
Total Debt 28,395
Total Equity 1,322,819.05
Total Capital 1,351,214.05
Debt Weighting 2.10
Equity Weighting 97.90
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 110,855136,819161,857182,527257,637319,239.48395,571.46490,154.85607,353.68752,575.41
Operating Cash Flow 37,09147,97154,52065,12491,652110,749.23137,230170,042.48210,700.61261,080.32
Capital Expenditure -13,184-25,139-23,548-22,281-24,640-42,514-52,679.34-65,275.27-80,882.96-100,222.54
Free Cash Flow 23,90722,83230,97242,84367,01268,235.2384,550.66104,767.21129,817.65160,857.79
WACC
PV LFCF 57,962.7866,195.4075,597.3286,334.6398,596.99
SUM PV LFCF 417,385.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.50
Free cash flow (t + 1) 164,074.94
Terminal Value 2,524,229.88
Present Value of Terminal Value 1,678,727.53

Intrinsic Value

Enterprise Value 2,096,113.05
Net Debt 7,450
Equity Value 2,088,663.05
Shares Outstanding 13,553.47
Equity Value Per Share 154.11