Discounted Cash Flow (DCF) Analysis Levered

Alphabet Inc. (GOOGL)

$131.11

+0.86 (+0.66%)
All numbers are in Millions, Currency in USD
Stock DCF: 132.62 | 131.11 | undervalue

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 136,819161,857182,527257,637282,836340,818.45410,687.52494,880.01596,332.29718,582.66
Revenue (%)
Operating Cash Flow 47,97154,52065,12491,65291,495117,478.78141,562.37170,583.19205,553.39247,692.61
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 22,83230,97242,84367,01260,01072,609.8687,495.15105,431.99127,045.95153,090.85

Weighted Average Cost Of Capital

Share price $ 131.11
Beta 1.060
Diluted Shares Outstanding 13,159
Cost of Debt
Tax Rate 15.92
After-tax Cost of Debt 1.01%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.544
Total Debt 29,679
Total Equity 1,725,276.49
Total Capital 1,754,955.49
Debt Weighting 1.69
Equity Weighting 98.31
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 136,819161,857182,527257,637282,836340,818.45410,687.52494,880.01596,332.29718,582.66
Operating Cash Flow 47,97154,52065,12491,65291,495117,478.78141,562.37170,583.19205,553.39247,692.61
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 22,83230,97242,84367,01260,01072,609.8687,495.15105,431.99127,045.95153,090.85
WACC
PV LFCF 66,370.9873,105.3880,523.0988,693.4497,692.81
SUM PV LFCF 406,385.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.40
Free cash flow (t + 1) 156,152.66
Terminal Value 2,110,171.11
Present Value of Terminal Value 1,346,576.60

Intrinsic Value

Enterprise Value 1,752,962.31
Net Debt 7,800
Equity Value 1,745,162.31
Shares Outstanding 13,159
Equity Value Per Share 132.62