Discounted Cash Flow (DCF) Analysis Levered
Alphabet Inc. (GOOGL)
$2155.85
+39.75 (+1.88%)
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 | $ 2,155.85 |
---|---|
Beta | 1.132 |
Diluted Shares Outstanding | 677.67 |
Cost of Debt | |
Tax Rate | 16.20 |
After-tax Cost of Debt | 1.02% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 8.100 |
Total Debt | 28,395 |
Total Equity | 1,460,963.49 |
Total Capital | 1,489,358.49 |
Debt Weighting | 1.91 |
Equity Weighting | 98.09 |
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 | 63,204.18 | 72,542.29 | 83,260.06 | 95,561.34 | 109,680.07 | |||||
SUM PV LFCF | 424,247.94 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.96 |
Free cash flow (t + 1) | 164,074.94 |
Terminal Value | 2,752,935.27 |
Present Value of Terminal Value | 1,877,074.98 |
Intrinsic Value
Enterprise Value | 2,301,322.92 |
---|---|
Net Debt | 7,450 |
Equity Value | 2,293,872.92 |
Shares Outstanding | 677.67 |
Equity Value Per Share | 3,384.92 |