Discounted Cash Flow (DCF) Analysis Levered
Block, Inc. (SQ)
$64.94
-0.15 (-0.23%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 4,713.50 | 9,497.58 | 17,661.20 | 17,531.59 | 28,443.15 | 46,146 | 74,867 | 121,463.78 | 197,062.14 | 319,712.47 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 465.70 | 381.60 | 847.83 | 175.90 | 1,400.96 | 2,272.91 | 3,687.55 | 5,982.66 | 9,706.24 | 15,747.34 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -62.50 | -138.40 | -134.32 | -170.81 | -321.27 | -521.22 | -845.63 | -1,371.94 | -2,225.83 | -3,611.18 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 403.20 | 243.20 | 713.51 | 5.09 | 1,079.69 | 1,751.68 | 2,841.92 | 4,610.72 | 7,480.40 | 12,136.16 |
Weighted Average Cost Of Capital
| Share price | $ 64.94 |
|---|---|
| Beta | 2.341 |
| Diluted Shares Outstanding | 501.78 |
| Cost of Debt | |
| Tax Rate | 4.35 |
| After-tax Cost of Debt | 4.78% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 14.794 |
| Total Debt | 5,465.66 |
| Total Equity | 32,585.53 |
| Total Capital | 38,051.19 |
| Debt Weighting | 14.36 |
| Equity Weighting | 85.64 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 4,713.50 | 9,497.58 | 17,661.20 | 17,531.59 | 28,443.15 | 46,146 | 74,867 | 121,463.78 | 197,062.14 | 319,712.47 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 465.70 | 381.60 | 847.83 | 175.90 | 1,400.96 | 2,272.91 | 3,687.55 | 5,982.66 | 9,706.24 | 15,747.34 |
| Capital Expenditure | -62.50 | -138.40 | -134.32 | -170.81 | -321.27 | -521.22 | -845.63 | -1,371.94 | -2,225.83 | -3,611.18 |
| Free Cash Flow | 403.20 | 243.20 | 713.51 | 5.09 | 1,079.69 | 1,751.68 | 2,841.92 | 4,610.72 | 7,480.40 | 12,136.16 |
| WACC | ||||||||||
| PV LFCF | 840.19 | 1,202.48 | 1,720.97 | 2,463.03 | 3,525.06 | 5,045.01 | ||||
| SUM PV LFCF | 17,934.84 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 13.36 |
| Free cash flow (t + 1) | 12,378.88 |
| Terminal Value | 108,969.05 |
| Present Value of Terminal Value | 58,210.85 |
Intrinsic Value
| Enterprise Value | 76,145.69 |
|---|---|
| Net Debt | 404.57 |
| Equity Value | 75,741.12 |
| Shares Outstanding | 501.78 |
| Equity Value Per Share | 150.95 |