Discounted Cash Flow (DCF) Analysis Levered

Meta Platforms, Inc. (META)

$160.68

-8.81 (-5.20%)
All numbers are in Millions, Currency in USD
Stock DCF: 555.41 | 160.68 | 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 40,65355,83870,69785,965117,929154,116.28201,407.86263,211.16343,979.21449,531.46
Revenue (%)
Operating Cash Flow 24,21629,27436,31438,74757,68379,322.49103,663.11135,472.80177,043.51231,370.46
Operating Cash Flow (%)
Capital Expenditure -6,733-13,915-15,102-15,115-18,567-29,643.02-38,739.18-50,626.55-66,161.63-86,463.75
Capital Expenditure (%)
Free Cash Flow 17,48315,35921,21223,63239,11649,679.4664,923.9384,846.26110,881.88144,906.70

Weighted Average Cost Of Capital

Share price $ 160.68
Beta 1.376
Diluted Shares Outstanding 2,859
Cost of Debt
Tax Rate 16.74
After-tax Cost of Debt 2.76%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.701
Total Debt 13,873
Total Equity 459,384.12
Total Capital 473,257.12
Debt Weighting 2.93
Equity Weighting 97.07
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 40,65355,83870,69785,965117,929154,116.28201,407.86263,211.16343,979.21449,531.46
Operating Cash Flow 24,21629,27436,31438,74757,68379,322.49103,663.11135,472.80177,043.51231,370.46
Capital Expenditure -6,733-13,915-15,102-15,115-18,567-29,643.02-38,739.18-50,626.55-66,161.63-86,463.75
Free Cash Flow 17,48315,35921,21223,63239,11649,679.4664,923.9384,846.26110,881.88144,906.70
WACC
PV LFCF 45,369.3754,147.2764,623.4877,126.5992,048.75
SUM PV LFCF 333,315.45

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.50
Free cash flow (t + 1) 147,804.84
Terminal Value 1,970,731.19
Present Value of Terminal Value 1,251,862.97

Intrinsic Value

Enterprise Value 1,585,178.42
Net Debt -2,728
Equity Value 1,587,906.42
Shares Outstanding 2,859
Equity Value Per Share 555.41