Discounted Cash Flow (DCF) Analysis Levered
PayPal Holdings, Inc. (PYPL)
$79.64
-2.19 (-2.68%)
All numbers are in Millions, Currency in USD
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 | 13,094 | 15,451 | 17,772 | 21,454 | 25,371 | 29,937.65 | 35,326.27 | 41,684.82 | 49,187.87 | 58,041.44 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,531 | 5,483 | 4,561 | 5,854 | 6,340 | 7,948.76 | 9,379.50 | 11,067.76 | 13,059.90 | 15,410.61 |
| 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 | 1,864 | 4,660 | 3,857 | 4,988 | 5,432 | 6,631.67 | 7,825.34 | 9,233.86 | 10,895.91 | 12,857.12 |
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 | 13,094 | 15,451 | 17,772 | 21,454 | 25,371 | 29,937.65 | 35,326.27 | 41,684.82 | 49,187.87 | 58,041.44 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,531 | 5,483 | 4,561 | 5,854 | 6,340 | 7,948.76 | 9,379.50 | 11,067.76 | 13,059.90 | 15,410.61 |
| 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 | 1,864 | 4,660 | 3,857 | 4,988 | 5,432 | 6,631.67 | 7,825.34 | 9,233.86 | 10,895.91 | 12,857.12 |
| WACC | ||||||||||
| PV LFCF | 6,085.78 | 6,590.06 | 7,136.13 | 7,727.44 | 8,367.75 | |||||
| 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 |