Discounted Cash Flow (DCF) Analysis Levered

JOYY Inc. (YY)

$40.07

+0.22 (+0.55%)

All numbers are in Millions, Currency in USD

Stock DCF: 159.66 | 40.07 | undervalue

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	2,291.55	3,655.41	2,025.15	2,619.05	2,411.52	2,630.49	2,869.34	3,129.88	3,414.08	3,724.08
Revenue (%)
Operating Cash Flow	649.05	654.83	524.10	210.42	316.49	490.72	535.28	583.88	636.90	694.73
Operating Cash Flow (%)
Capital Expenditure	-57.11	-156.15	-161.83	-184.88	-69.22	-129.86	-141.65	-154.52	-168.55	-183.85
Capital Expenditure (%)
Free Cash Flow	591.94	498.68	362.27	25.54	247.27	360.86	393.62	429.37	468.35	510.88

Weighted Average Cost Of Capital

Share price	$ 40.07
Beta	0.620
Diluted Shares Outstanding	73.64
Cost of Debt
Tax Rate	5.45
After-tax Cost of Debt	1.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.470
Total Debt	907.58
Total Equity	2,950.85
Total Capital	3,858.43
Debt Weighting	23.52
Equity Weighting	76.48
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	2,291.55	3,655.41	2,025.15	2,619.05	2,411.52	2,630.49	2,869.34	3,129.88	3,414.08	3,724.08
Operating Cash Flow	649.05	654.83	524.10	210.42	316.49	490.72	535.28	583.88	636.90	694.73
Capital Expenditure	-57.11	-156.15	-161.83	-184.88	-69.22	-129.86	-141.65	-154.52	-168.55	-183.85
Free Cash Flow	591.94	498.68	362.27	25.54	247.27	360.86	393.62	429.37	468.35	510.88
WACC
PV LFCF						340.34	350.13	360.20	370.56	381.22
SUM PV LFCF										1,802.44

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.03
Free cash flow (t + 1)	521.10
Terminal Value	12,930.47
Present Value of Terminal Value	9,648.74

Intrinsic Value

Enterprise Value	11,451.17
Net Debt	-306.87
Equity Value	11,758.04
Shares Outstanding	73.64
Equity Value Per Share	159.66