Discounted Cash Flow (DCF) Analysis Levered
Block, Inc. (SQ)
$74.5
+0.52 (+0.70%)
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 | 3,298.18 | 4,713.50 | 9,497.58 | 17,661.20 | 17,531.59 | 27,596.06 | 43,438.30 | 68,375.20 | 107,627.79 | 169,414.37 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 295.08 | 465.70 | 381.60 | 847.83 | 175.90 | 1,581.18 | 2,488.90 | 3,917.71 | 6,166.78 | 9,706.98 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -62.79 | -62.50 | -138.40 | -134.32 | -170.81 | -354.43 | -557.90 | -878.17 | -1,382.31 | -2,175.86 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 232.29 | 403.20 | 243.20 | 713.51 | 5.09 | 1,226.75 | 1,931 | 3,039.54 | 4,784.47 | 7,531.12 |
Weighted Average Cost Of Capital
| Share price | $ 74.5 |
|---|---|
| Beta | 2.350 |
| Diluted Shares Outstanding | 501.78 |
| Cost of Debt | |
| Tax Rate | 4.35 |
| After-tax Cost of Debt | 0.57% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 14.575 |
| Total Debt | 6,009.45 |
| Total Equity | 37,382.54 |
| Total Capital | 43,391.99 |
| Debt Weighting | 13.85 |
| Equity Weighting | 86.15 |
| 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 | 3,298.18 | 4,713.50 | 9,497.58 | 17,661.20 | 17,531.59 | 27,596.06 | 43,438.30 | 68,375.20 | 107,627.79 | 169,414.37 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 295.08 | 465.70 | 381.60 | 847.83 | 175.90 | 1,581.18 | 2,488.90 | 3,917.71 | 6,166.78 | 9,706.98 |
| Capital Expenditure | -62.79 | -62.50 | -138.40 | -134.32 | -170.81 | -354.43 | -557.90 | -878.17 | -1,382.31 | -2,175.86 |
| Free Cash Flow | 232.29 | 403.20 | 243.20 | 713.51 | 5.09 | 1,226.75 | 1,931 | 3,039.54 | 4,784.47 | 7,531.12 |
| WACC | ||||||||||
| PV LFCF | 1,089.09 | 1,521.94 | 2,126.82 | 2,972.10 | 4,153.33 | |||||
| SUM PV LFCF | 11,863.27 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 12.64 |
| Free cash flow (t + 1) | 7,681.74 |
| Terminal Value | 72,196.80 |
| Present Value of Terminal Value | 39,815.74 |
Intrinsic Value
| Enterprise Value | 51,679 |
|---|---|
| Net Debt | 1,465.25 |
| Equity Value | 50,213.75 |
| Shares Outstanding | 501.78 |
| Equity Value Per Share | 100.07 |