Discounted Cash Flow (DCF) Analysis Levered
PayPal Holdings, Inc. (PYPL)
$74.34
-2.38 (-3.10%)
All numbers are in Millions, Currency in USD
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 | 15,451 | 17,772 | 21,454 | 25,371 | 27,518 | 31,814.92 | 36,782.80 | 42,526.41 | 49,166.88 | 56,844.26 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 5,483 | 4,561 | 5,854 | 6,340 | 5,813 | 8,561.40 | 9,898.26 | 11,443.87 | 13,230.82 | 15,296.81 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -823 | -704 | -866 | -908 | -706 | -1,238.80 | -1,432.24 | -1,655.88 | -1,914.44 | -2,213.38 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 4,660 | 3,857 | 4,988 | 5,432 | 5,107 | 7,322.61 | 8,466.03 | 9,787.99 | 11,316.38 | 13,083.42 |
Weighted Average Cost Of Capital
| Share price | $ 74.34 |
|---|---|
| Beta | 1.309 |
| Diluted Shares Outstanding | 1,158 |
| Cost of Debt | |
| Tax Rate | 28.13 |
| After-tax Cost of Debt | 2.10% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.679 |
| Total Debt | 10,417 |
| Total Equity | 86,085.72 |
| Total Capital | 96,502.72 |
| Debt Weighting | 10.79 |
| Equity Weighting | 89.21 |
| 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 | 15,451 | 17,772 | 21,454 | 25,371 | 27,518 | 31,814.92 | 36,782.80 | 42,526.41 | 49,166.88 | 56,844.26 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 5,483 | 4,561 | 5,854 | 6,340 | 5,813 | 8,561.40 | 9,898.26 | 11,443.87 | 13,230.82 | 15,296.81 |
| Capital Expenditure | -823 | -704 | -866 | -908 | -706 | -1,238.80 | -1,432.24 | -1,655.88 | -1,914.44 | -2,213.38 |
| Free Cash Flow | 4,660 | 3,857 | 4,988 | 5,432 | 5,107 | 7,322.61 | 8,466.03 | 9,787.99 | 11,316.38 | 13,083.42 |
| WACC | ||||||||||
| PV LFCF | 6,726.63 | 7,144.02 | 7,587.32 | 8,058.13 | 8,558.15 | |||||
| SUM PV LFCF | 38,074.25 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.86 |
| Free cash flow (t + 1) | 13,345.09 |
| Terminal Value | 194,534.88 |
| Present Value of Terminal Value | 127,249.43 |
Intrinsic Value
| Enterprise Value | 165,323.68 |
|---|---|
| Net Debt | 2,641 |
| Equity Value | 162,682.68 |
| Shares Outstanding | 1,158 |
| Equity Value Per Share | 140.49 |