Discounted Cash Flow (DCF) Analysis Levered

PayPal Holdings, Inc. (PYPL)

$79.64

-2.19 (-2.68%)
All numbers are in Millions, Currency in USD
Stock DCF: 130.28 | 79.64 | 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 13,09415,45117,77221,45425,37129,937.6535,326.2741,684.8249,187.8758,041.44
Revenue (%)
Operating Cash Flow 2,5315,4834,5615,8546,3407,948.769,379.5011,067.7613,059.9015,410.61
Operating Cash Flow (%)
Capital Expenditure -667-823-704-866-908-1,317.09-1,554.16-1,833.90-2,163.99-2,553.49
Capital Expenditure (%)
Free Cash Flow 1,8644,6603,8574,9885,4326,631.677,825.349,233.8610,895.9112,857.12

Weighted Average Cost Of Capital

Share price $ 79.64
Beta 1.279
Diluted Shares Outstanding 1,186
Cost of Debt
Tax Rate -1.71
After-tax Cost of Debt 2.56%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.586
Total Debt 9,048
Total Equity 94,453.04
Total Capital 103,501.04
Debt Weighting 8.74
Equity Weighting 91.26
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 13,09415,45117,77221,45425,37129,937.6535,326.2741,684.8249,187.8758,041.44
Operating Cash Flow 2,5315,4834,5615,8546,3407,948.769,379.5011,067.7613,059.9015,410.61
Capital Expenditure -667-823-704-866-908-1,317.09-1,554.16-1,833.90-2,163.99-2,553.49
Free Cash Flow 1,8644,6603,8574,9885,4326,631.677,825.349,233.8610,895.9112,857.12
WACC
PV LFCF 6,085.786,590.067,136.137,727.448,367.75
SUM PV LFCF 35,907.16

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.97
Free cash flow (t + 1) 13,114.26
Terminal Value 188,152.93
Present Value of Terminal Value 122,454.92

Intrinsic Value

Enterprise Value 158,362.08
Net Debt 3,851
Equity Value 154,511.08
Shares Outstanding 1,186
Equity Value Per Share 130.28