Discounted Cash Flow (DCF) Analysis Levered

Groupon, Inc. (GRPN)

$7.82

-0.16 (-2.01%)

All numbers are in Millions, Currency in USD

Stock DCF: 0.43 | 7.82 | overvalue

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	2,843.88	2,636.75	2,218.91	1,416.87	967.11	747.04	577.06	445.75	344.32	265.97
Revenue (%)
Operating Cash Flow	135.08	190.86	71.28	-0.06	-123.96	3.55	2.75	2.12	1.64	1.27
Operating Cash Flow (%)
Capital Expenditure	-60.22	-87.96	-71.07	-0.05	-99.26	-28.27	-21.84	-16.87	-13.03	-10.07
Capital Expenditure (%)
Free Cash Flow	74.86	102.90	0.22	-0.11	-223.22	-24.72	-19.09	-14.75	-11.39	-8.80

Weighted Average Cost Of Capital

Share price	$ 7.82
Beta	1.843
Diluted Shares Outstanding	33.51
Cost of Debt
Tax Rate	-36.72
After-tax Cost of Debt	5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.338
Total Debt	323.40
Total Equity	262.08
Total Capital	585.48
Debt Weighting	55.24
Equity Weighting	44.76
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	2,843.88	2,636.75	2,218.91	1,416.87	967.11	747.04	577.06	445.75	344.32	265.97
Operating Cash Flow	135.08	190.86	71.28	-0.06	-123.96	3.55	2.75	2.12	1.64	1.27
Capital Expenditure	-60.22	-87.96	-71.07	-0.05	-99.26	-28.27	-21.84	-16.87	-13.03	-10.07
Free Cash Flow	74.86	102.90	0.22	-0.11	-223.22	-24.72	-19.09	-14.75	-11.39	-8.80
WACC
PV LFCF						-22.83	-16.29	-11.62	-8.29	-5.91
SUM PV LFCF										-64.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.28
Free cash flow (t + 1)	-8.98
Terminal Value	-142.94
Present Value of Terminal Value	-96.03

Intrinsic Value

Enterprise Value	-160.96
Net Debt	-175.32
Equity Value	14.36
Shares Outstanding	33.51
Equity Value Per Share	0.43