Discounted Cash Flow (DCF) Analysis Levered

JOYY Inc. (YY)

$32.62

+2.62 (+8.73%)

All numbers are in Millions, Currency in USD

Stock DCF: 445.31 | 32.62 | 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	1,775.98	2,291.55	3,655.41	2,025.15	2,619.05	3,098.83	3,666.50	4,338.15	5,132.85	6,073.13
Revenue (%)
Operating Cash Flow	569.56	649.05	654.83	524.10	210.42	695.51	822.92	973.67	1,152.03	1,363.07
Operating Cash Flow (%)
Capital Expenditure	-63.58	-57.11	-156.15	-161.83	-184.88	-157.38	-186.21	-220.32	-260.68	-308.44
Capital Expenditure (%)
Free Cash Flow	505.98	591.94	498.68	362.27	25.54	538.13	636.71	753.34	891.35	1,054.63

Weighted Average Cost Of Capital

Share price	$ 32.62
Beta	0.582
Diluted Shares Outstanding	80.01
Cost of Debt
Tax Rate	-3.49
After-tax Cost of Debt	1.54%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.873
Total Debt	940.85
Total Equity	2,609.93
Total Capital	3,550.78
Debt Weighting	26.50
Equity Weighting	73.50
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	1,775.98	2,291.55	3,655.41	2,025.15	2,619.05	3,098.83	3,666.50	4,338.15	5,132.85	6,073.13
Operating Cash Flow	569.56	649.05	654.83	524.10	210.42	695.51	822.92	973.67	1,152.03	1,363.07
Capital Expenditure	-63.58	-57.11	-156.15	-161.83	-184.88	-157.38	-186.21	-220.32	-260.68	-308.44
Free Cash Flow	505.98	591.94	498.68	362.27	25.54	538.13	636.71	753.34	891.35	1,054.63
WACC
PV LFCF						513.87	580.60	656	741.19	837.44
SUM PV LFCF										3,329.10

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.72
Free cash flow (t + 1)	1,075.72
Terminal Value	39,548.67
Present Value of Terminal Value	31,403.91

Intrinsic Value

Enterprise Value	34,733.01
Net Debt	-896.33
Equity Value	35,629.34
Shares Outstanding	80.01
Equity Value Per Share	445.31