Discounted Cash Flow (DCF) Analysis Levered
Alphabet Inc. (GOOG)
$97.6
-1.22 (-1.23%)
All numbers are in Millions, Currency in USD
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 | 110,855 | 136,819 | 161,857 | 182,527 | 257,637 | 319,239.48 | 395,571.46 | 490,154.85 | 607,353.68 | 752,575.41 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 37,091 | 47,971 | 54,520 | 65,124 | 91,652 | 110,749.23 | 137,230 | 170,042.48 | 210,700.61 | 261,080.32 |
| 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 | 23,907 | 22,832 | 30,972 | 42,843 | 67,012 | 68,235.23 | 84,550.66 | 104,767.21 | 129,817.65 | 160,857.79 |
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 | 110,855 | 136,819 | 161,857 | 182,527 | 257,637 | 319,239.48 | 395,571.46 | 490,154.85 | 607,353.68 | 752,575.41 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 37,091 | 47,971 | 54,520 | 65,124 | 91,652 | 110,749.23 | 137,230 | 170,042.48 | 210,700.61 | 261,080.32 |
| 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 | 23,907 | 22,832 | 30,972 | 42,843 | 67,012 | 68,235.23 | 84,550.66 | 104,767.21 | 129,817.65 | 160,857.79 |
| WACC | ||||||||||
| PV LFCF | 57,962.78 | 66,195.40 | 75,597.32 | 86,334.63 | 98,596.99 | |||||
| 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 |