Discounted Cash Flow (DCF) Analysis Levered
Twitter, Inc. (TWTR)
$37.86
-0.43 (-1.12%)
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 | 2,443.30 | 3,042.36 | 3,459.33 | 3,716.35 | 5,077.48 | 6,121.91 | 7,381.18 | 8,899.47 | 10,730.08 | 12,937.23 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 831.21 | 1,339.71 | 1,303.36 | 992.87 | 632.69 | 1,896.68 | 2,286.82 | 2,757.22 | 3,324.37 | 4,008.19 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -160.74 | -483.93 | -540.69 | -873.35 | -1,011.55 | -998.33 | -1,203.69 | -1,451.29 | -1,749.81 | -2,109.75 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 670.47 | 855.78 | 762.68 | 119.52 | -378.86 | 898.34 | 1,083.13 | 1,305.93 | 1,574.56 | 1,898.44 |
Weighted Average Cost Of Capital
| Share price | $ 37.86 |
|---|---|
| Beta | 0.801 |
| Diluted Shares Outstanding | 787.86 |
| Cost of Debt | |
| Tax Rate | 46.14 |
| After-tax Cost of Debt | 0.50% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.642 |
| Total Debt | 5,546.57 |
| Total Equity | 29,828.42 |
| Total Capital | 35,374.99 |
| Debt Weighting | 15.68 |
| Equity Weighting | 84.32 |
| 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 | 2,443.30 | 3,042.36 | 3,459.33 | 3,716.35 | 5,077.48 | 6,121.91 | 7,381.18 | 8,899.47 | 10,730.08 | 12,937.23 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 831.21 | 1,339.71 | 1,303.36 | 992.87 | 632.69 | 1,896.68 | 2,286.82 | 2,757.22 | 3,324.37 | 4,008.19 |
| Capital Expenditure | -160.74 | -483.93 | -540.69 | -873.35 | -1,011.55 | -998.33 | -1,203.69 | -1,451.29 | -1,749.81 | -2,109.75 |
| Free Cash Flow | 670.47 | 855.78 | 762.68 | 119.52 | -378.86 | 898.34 | 1,083.13 | 1,305.93 | 1,574.56 | 1,898.44 |
| WACC | ||||||||||
| PV LFCF | 850.06 | 969.83 | 1,106.47 | 1,262.37 | 1,440.23 | |||||
| SUM PV LFCF | 5,628.97 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.68 |
| Free cash flow (t + 1) | 1,936.41 |
| Terminal Value | 52,619.80 |
| Present Value of Terminal Value | 39,919.51 |
Intrinsic Value
| Enterprise Value | 45,548.47 |
|---|---|
| Net Debt | 3,360.03 |
| Equity Value | 42,188.45 |
| Shares Outstanding | 787.86 |
| Equity Value Per Share | 53.55 |