Discounted Cash Flow (DCF) Analysis Levered

Hello Group Inc. (MOMO)

$6.95

-0.09 (-1.28%)

All numbers are in Millions, Currency in USD

Stock DCF: 33.26 | 6.95 | 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	2,145.35	2,722.41	2,403.87	2,332.12	2,032.67	2,029.48	2,026.30	2,023.12	2,019.94	2,016.78
Revenue (%)
Operating Cash Flow	532.43	871.82	492.94	249.47	196.30	396.57	395.95	395.33	394.71	394.09
Operating Cash Flow (%)
Capital Expenditure	-38.85	-29.84	-19.86	-15.25	-12.87	-20.38	-20.35	-20.32	-20.28	-20.25
Capital Expenditure (%)
Free Cash Flow	493.58	841.98	473.08	234.22	183.43	376.19	375.60	375.01	374.42	373.84

Weighted Average Cost Of Capital

Share price	$ 6.95
Beta	0.986
Diluted Shares Outstanding	202.35
Cost of Debt
Tax Rate	26.93
After-tax Cost of Debt	2.21%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.135
Total Debt	442.85
Total Equity	1,406.34
Total Capital	1,849.19
Debt Weighting	23.95
Equity Weighting	76.05
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	2,145.35	2,722.41	2,403.87	2,332.12	2,032.67	2,029.48	2,026.30	2,023.12	2,019.94	2,016.78
Operating Cash Flow	532.43	871.82	492.94	249.47	196.30	396.57	395.95	395.33	394.71	394.09
Capital Expenditure	-38.85	-29.84	-19.86	-15.25	-12.87	-20.38	-20.35	-20.32	-20.28	-20.25
Free Cash Flow	493.58	841.98	473.08	234.22	183.43	376.19	375.60	375.01	374.42	373.84
WACC
PV LFCF						434.58	403.70	375.01	348.37	323.61
SUM PV LFCF										1,518.41

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.48
Free cash flow (t + 1)	381.31
Terminal Value	6,958.29
Present Value of Terminal Value	4,851.37

Intrinsic Value

Enterprise Value	6,369.78
Net Debt	-360.05
Equity Value	6,729.83
Shares Outstanding	202.35
Equity Value Per Share	33.26