Discounted Cash Flow (DCF) Analysis Levered

23andMe Holding Co. (ME)

$3.33

-0.85 (-20.33%)
All numbers are in Millions, Currency in USD
Stock DCF: -72.04 | 3.33 | overvalue

Free Cash Flow

Year
A/P
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 243.92271.89303.07337.83376.57419.76467.90
Revenue (%)
Operating Cash Flow -74.25-166.83-139.11-155.06-172.85-192.67-214.76
Operating Cash Flow (%)
Capital Expenditure -7.37-13.97-12.37-13.79-15.37-17.13-19.10
Capital Expenditure (%)
Free Cash Flow -81.63-180.80-151.48-168.85-188.21-209.80-233.86

Weighted Average Cost Of Capital

Share price $ 3.33
Beta 0.000
Diluted Shares Outstanding 361.53
Cost of Debt
Tax Rate 1.57
After-tax Cost of Debt 0.31%
Risk-Free Rate
Market Risk Premium
Cost of Equity 2.989
Total Debt 86.31
Total Equity 1,203.89
Total Capital 1,290.20
Debt Weighting 6.69
Equity Weighting 93.31
Wacc

Build Up Free Cash Flow

Year
A/P
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 243.92271.89303.07337.83376.57419.76467.90
Operating Cash Flow -74.25-166.83-139.11-155.06-172.85-192.67-214.76
Capital Expenditure -7.37-13.97-12.37-13.79-15.37-17.13-19.10
Free Cash Flow -81.63-180.80-151.48-168.85-188.21-209.80-233.86
WACC
PV LFCF -160.11-173.59-188.21-204.06-221.25
SUM PV LFCF -871.67

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 2.81
Free cash flow (t + 1) -238.54
Terminal Value -29,448.86
Present Value of Terminal Value -25,638.44

Intrinsic Value

Enterprise Value -26,510.11
Net Debt -466.87
Equity Value -26,043.24
Shares Outstanding 361.53
Equity Value Per Share -72.04