Discounted Cash Flow (DCF) Analysis Levered

Alphabet Inc. (GOOGL)

$2155.85

+39.75 (+1.88%)

All numbers are in Millions, Currency in USD

Stock DCF: 3,384.92 | 2155.85 | undervalue

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