Discounted Cash Flow (DCF) Analysis Levered

Alphabet Inc. (GOOG)

$139.2

+0.45 (+0.32%)
All numbers are in Millions, Currency in USD
Stock DCF: 148.10 | 139.2 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 161,857182,527257,637282,836307,394363,020.17428,712.48506,292.50597,911.43706,109.78
Revenue (%)
Operating Cash Flow 54,52065,12491,65291,495101,746123,707.05146,093.14172,530.23203,751.38240,622.33
Operating Cash Flow (%)
Capital Expenditure -23,548-22,281-24,640-31,485-32,251-42,069.02-49,681.85-58,672.30-69,289.67-81,828.36
Capital Expenditure (%)
Free Cash Flow 30,97242,84367,01260,01069,49581,638.0396,411.29113,857.92134,461.71158,793.96

Weighted Average Cost Of Capital

Share price $ 139.2
Beta 1.058
Diluted Shares Outstanding 12,722
Cost of Debt
Tax Rate 13.91
After-tax Cost of Debt 3.70%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.293
Total Debt 28,504
Total Equity 1,770,902.40
Total Capital 1,799,406.40
Debt Weighting 1.58
Equity Weighting 98.42
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 161,857182,527257,637282,836307,394363,020.17428,712.48506,292.50597,911.43706,109.78
Operating Cash Flow 54,52065,12491,65291,495101,746123,707.05146,093.14172,530.23203,751.38240,622.33
Capital Expenditure -23,548-22,281-24,640-31,485-32,251-42,069.02-49,681.85-58,672.30-69,289.67-81,828.36
Free Cash Flow 30,97242,84367,01260,01069,49581,638.0396,411.29113,857.92134,461.71158,793.96
WACC
PV LFCF 74,760.1080,850.4887,437.0294,560.13102,263.53
SUM PV LFCF 439,871.27

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.20
Free cash flow (t + 1) 161,969.84
Terminal Value 2,249,581.15
Present Value of Terminal Value 1,448,733.40

Intrinsic Value

Enterprise Value 1,888,604.67
Net Debt 4,456
Equity Value 1,884,148.67
Shares Outstanding 12,722
Equity Value Per Share 148.10