Discounted Cash Flow (DCF) Analysis Levered

Meta Platforms, Inc. (META)

$303.96

+6.22 (+2.09%)
All numbers are in Millions, Currency in USD
Stock DCF: 309.34 | 303.96 | undervalue

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 55,83870,69785,965117,929116,609141,175.76170,918.16206,926.58250,521.13303,300.02
Revenue (%)
Operating Cash Flow 29,27436,31438,74757,68350,47568,064.8982,404.5599,765.25120,783.43146,229.65
Operating Cash Flow (%)
Capital Expenditure -13,915-15,102-15,115-18,567-31,431-30,088.23-36,427.11-44,101.45-53,392.58-64,641.13
Capital Expenditure (%)
Free Cash Flow 15,35921,21223,63239,11619,04437,976.6645,977.4455,663.8067,390.8581,588.51

Weighted Average Cost Of Capital

Share price $ 303.96
Beta 1.234
Diluted Shares Outstanding 2,702
Cost of Debt
Tax Rate 19.50
After-tax Cost of Debt -0.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.422
Total Debt 26,591
Total Equity 821,299.92
Total Capital 847,890.92
Debt Weighting 3.14
Equity Weighting 96.86
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 55,83870,69785,965117,929116,609141,175.76170,918.16206,926.58250,521.13303,300.02
Operating Cash Flow 29,27436,31438,74757,68350,47568,064.8982,404.5599,765.25120,783.43146,229.65
Capital Expenditure -13,915-15,102-15,115-18,567-31,431-30,088.23-36,427.11-44,101.45-53,392.58-64,641.13
Free Cash Flow 15,35921,21223,63239,11619,04437,976.6645,977.4455,663.8067,390.8581,588.51
WACC
PV LFCF 34,499.1437,942.6741,729.9245,895.2050,476.23
SUM PV LFCF 210,543.17

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.08
Free cash flow (t + 1) 83,220.28
Terminal Value 1,029,953.97
Present Value of Terminal Value 637,199.92

Intrinsic Value

Enterprise Value 847,743.09
Net Debt 11,910
Equity Value 835,833.09
Shares Outstanding 2,702
Equity Value Per Share 309.34