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 2,843.882,636.752,218.911,416.87967.11747.04577.06445.75344.32265.97
Revenue (%)
Operating Cash Flow 135.08190.8671.28-0.06-123.963.552.752.121.641.27
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 74.86102.900.22-0.11-223.22-24.72-19.09-14.75-11.39-8.80

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 2,843.882,636.752,218.911,416.87967.11747.04577.06445.75344.32265.97
Operating Cash Flow 135.08190.8671.28-0.06-123.963.552.752.121.641.27
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 74.86102.900.22-0.11-223.22-24.72-19.09-14.75-11.39-8.80
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