Discounted Cash Flow (DCF) Analysis Levered
Yelp Inc. (YELP)
$42.11
+0.62 (+1.49%)
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 | 942.77 | 1,014.19 | 872.93 | 1,031.84 | 1,193.51 | 1,275.62 | 1,363.37 | 1,457.17 | 1,557.42 | 1,664.56 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 160.19 | 204.78 | 176.70 | 212.66 | 192.31 | 240.19 | 256.72 | 274.38 | 293.25 | 313.43 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -44.97 | -37.52 | -38.13 | -28.28 | -31.98 | -46.58 | -49.79 | -53.21 | -56.87 | -60.78 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 115.22 | 167.26 | 138.57 | 184.37 | 160.33 | 193.61 | 206.93 | 221.17 | 236.38 | 252.64 |
Weighted Average Cost Of Capital
Share price | $ 42.11 |
---|---|
Beta | 1.464 |
Diluted Shares Outstanding | 78.62 |
Cost of Debt | |
Tax Rate | 45.57 |
After-tax Cost of Debt | -3.63% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 11.454 |
Total Debt | 126.33 |
Total Equity | 3,310.52 |
Total Capital | 3,436.85 |
Debt Weighting | 3.68 |
Equity Weighting | 96.32 |
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 | 942.77 | 1,014.19 | 872.93 | 1,031.84 | 1,193.51 | 1,275.62 | 1,363.37 | 1,457.17 | 1,557.42 | 1,664.56 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 160.19 | 204.78 | 176.70 | 212.66 | 192.31 | 240.19 | 256.72 | 274.38 | 293.25 | 313.43 |
Capital Expenditure | -44.97 | -37.52 | -38.13 | -28.28 | -31.98 | -46.58 | -49.79 | -53.21 | -56.87 | -60.78 |
Free Cash Flow | 115.22 | 167.26 | 138.57 | 184.37 | 160.33 | 193.61 | 206.93 | 221.17 | 236.38 | 252.64 |
WACC | ||||||||||
PV LFCF | 174.58 | 168.25 | 162.15 | 156.27 | 150.61 | |||||
SUM PV LFCF | 811.87 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 10.90 |
Free cash flow (t + 1) | 257.70 |
Terminal Value | 2,895.46 |
Present Value of Terminal Value | 1,726.08 |
Intrinsic Value
Enterprise Value | 2,537.95 |
---|---|
Net Debt | -180.04 |
Equity Value | 2,717.99 |
Shares Outstanding | 78.62 |
Equity Value Per Share | 34.57 |