Discounted Cash Flow (DCF) Analysis Levered

The Goldman Sachs Group, Inc. (GS)

$335.75

+8.95 (+2.74%)
All numbers are in Millions, Currency in USD
Stock DCF: 166.07 | 335.75 | overvalue

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 33,25633,27444,55959,33947,36552,925.6559,139.1366,082.0773,840.1182,508.94
Revenue (%)
Operating Cash Flow 20,42123,868-13,7289218,70812,941.9714,461.3516,159.1218,056.2020,176
Operating Cash Flow (%)
Capital Expenditure -7,982-8,443-6,309-4,667-3,748-8,395.34-9,380.96-10,482.28-11,712.90-13,088
Capital Expenditure (%)
Free Cash Flow 12,43915,425-20,037-3,7464,9604,546.625,080.405,676.846,343.307,088

Weighted Average Cost Of Capital

Share price $ 335.75
Beta 1.404
Diluted Shares Outstanding 352.30
Cost of Debt
Tax Rate 16.50
After-tax Cost of Debt 5.79%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.409
Total Debt 308,000
Total Equity 118,284.73
Total Capital 426,284.72
Debt Weighting 72.25
Equity Weighting 27.75
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 33,25633,27444,55959,33947,36552,925.6559,139.1366,082.0773,840.1182,508.94
Operating Cash Flow 20,42123,868-13,7289218,70812,941.9714,461.3516,159.1218,056.2020,176
Capital Expenditure -7,982-8,443-6,309-4,667-3,748-8,395.34-9,380.96-10,482.28-11,712.90-13,088
Free Cash Flow 12,43915,425-20,037-3,7464,9604,546.625,080.405,676.846,343.307,088
WACC
PV LFCF 4,246.404,431.624,624.914,826.635,037.15
SUM PV LFCF 23,166.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.07
Free cash flow (t + 1) 7,229.76
Terminal Value 142,598.86
Present Value of Terminal Value 101,339.10

Intrinsic Value

Enterprise Value 124,505.81
Net Debt 66,000
Equity Value 58,505.81
Shares Outstanding 352.30
Equity Value Per Share 166.07