Discounted Cash Flow (DCF) Analysis Levered

Block, Inc. (SQ)

$82.11

-1.33 (-1.59%)
All numbers are in Millions, Currency in USD
Stock DCF: 186.95 | 82.11 | 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 2,214.253,298.184,713.509,497.5817,661.2029,993.8750,938.3386,508.14146,916.03249,506.23
Revenue (%)
Operating Cash Flow 127.71295.08465.70381.60847.832,004.373,4045,780.999,817.8016,673.49
Operating Cash Flow (%)
Capital Expenditure -26.10-62.79-62.50-138.40-134.32-397.48-675.03-1,146.40-1,946.93-3,306.45
Capital Expenditure (%)
Free Cash Flow 101.61232.29403.20243.20713.511,606.892,728.974,634.587,870.8713,367.04

Weighted Average Cost Of Capital

Share price $ 82.11
Beta 2.307
Diluted Shares Outstanding 501.78
Cost of Debt
Tax Rate -5.60
After-tax Cost of Debt 0.60%
Risk-Free Rate
Market Risk Premium
Cost of Equity 13.724
Total Debt 5,516.24
Total Equity 41,201.07
Total Capital 46,717.31
Debt Weighting 11.81
Equity Weighting 88.19
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 2,214.253,298.184,713.509,497.5817,661.2029,993.8750,938.3386,508.14146,916.03249,506.23
Operating Cash Flow 127.71295.08465.70381.60847.832,004.373,4045,780.999,817.8016,673.49
Capital Expenditure -26.10-62.79-62.50-138.40-134.32-397.48-675.03-1,146.40-1,946.93-3,306.45
Free Cash Flow 101.61232.29403.20243.20713.511,606.892,728.974,634.587,870.8713,367.04
WACC
PV LFCF 1,432.552,168.933,283.834,971.837,527.52
SUM PV LFCF 19,384.65

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.17
Free cash flow (t + 1) 13,634.38
Terminal Value 134,064.70
Present Value of Terminal Value 75,497.20

Intrinsic Value

Enterprise Value 94,881.85
Net Debt 1,072.57
Equity Value 93,809.28
Shares Outstanding 501.78
Equity Value Per Share 186.95