Discounted Cash Flow (DCF) Analysis Levered

Sohu.com Limited (SOHU)

$17.065

+0.39 (+2.31%)
All numbers are in Millions, Currency in USD
Stock DCF: 24.85 | 17.065 | 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 1,860.961,883.031,845.45749.89835.58733.74644.32565.79496.84436.29
Revenue (%)
Operating Cash Flow 183.7884.02210.5995.21-62.2845.4839.9435.0730.8027.04
Operating Cash Flow (%)
Capital Expenditure -145.32-199.38-96.76-33.78-42.21-48.71-42.78-37.56-32.99-28.97
Capital Expenditure (%)
Free Cash Flow 38.47-115.35113.8361.43-104.49-3.23-2.84-2.49-2.19-1.92

Weighted Average Cost Of Capital

Share price $ 17.065
Beta 1.463
Diluted Shares Outstanding 39.25
Cost of Debt
Tax Rate -605.14
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.523
Total Debt -
Total Equity 669.78
Total Capital 669.78
Debt Weighting 0.00
Equity Weighting 100.00
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 1,860.961,883.031,845.45749.89835.58733.74644.32565.79496.84436.29
Operating Cash Flow 183.7884.02210.5995.21-62.2845.4839.9435.0730.8027.04
Capital Expenditure -145.32-199.38-96.76-33.78-42.21-48.71-42.78-37.56-32.99-28.97
Free Cash Flow 38.47-115.35113.8361.43-104.49-3.23-2.84-2.49-2.19-1.92
WACC
PV LFCF -2.93-2.32-1.85-1.47-1.17
SUM PV LFCF -9.73

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.52
Free cash flow (t + 1) -1.96
Terminal Value -23.02
Present Value of Terminal Value -13.96

Intrinsic Value

Enterprise Value -23.69
Net Debt -998.95
Equity Value 975.26
Shares Outstanding 39.25
Equity Value Per Share 24.85