Discounted Cash Flow (DCF) Analysis Levered
Alphabet Inc. (GOOGL)
$131.11
+0.86 (+0.66%)
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 | $ 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 | 136,819 | 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 | 66,370.98 | 73,105.38 | 80,523.09 | 88,693.44 | 97,692.81 | |||||
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 |