Discounted Cash Flow (DCF) Analysis Levered
Zillow Group, Inc. (Z)
$35.46
+1.32 (+3.87%)
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 | 1,076.79 | 1,333.55 | 2,742.84 | 3,339.82 | 8,147.38 | 14,160.86 | 24,612.83 | 42,779.28 | 74,354.18 | 129,234.15 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 258.19 | 3.85 | -612.17 | 424.20 | -3,176.69 | -689.40 | -1,198.24 | -2,082.64 | -3,619.82 | -6,291.57 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -78.64 | -78.53 | -86.64 | -108.52 | -104.40 | -591.39 | -1,027.88 | -1,786.55 | -3,105.18 | -5,397.08 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 179.56 | -74.68 | -698.81 | 315.68 | -3,281.09 | -1,280.79 | -2,226.12 | -3,869.19 | -6,725 | -11,688.65 |
Weighted Average Cost Of Capital
| Share price | $ 35.46 |
|---|---|
| Beta | 1.480 |
| Diluted Shares Outstanding | 223.85 |
| Cost of Debt | |
| Tax Rate | -0.24 |
| After-tax Cost of Debt | 3.83% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.113 |
| Total Debt | 5,011 |
| Total Equity | 7,937.65 |
| Total Capital | 12,948.65 |
| Debt Weighting | 38.70 |
| Equity Weighting | 61.30 |
| 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 | 1,076.79 | 1,333.55 | 2,742.84 | 3,339.82 | 8,147.38 | 14,160.86 | 24,612.83 | 42,779.28 | 74,354.18 | 129,234.15 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 258.19 | 3.85 | -612.17 | 424.20 | -3,176.69 | -689.40 | -1,198.24 | -2,082.64 | -3,619.82 | -6,291.57 |
| Capital Expenditure | -78.64 | -78.53 | -86.64 | -108.52 | -104.40 | -591.39 | -1,027.88 | -1,786.55 | -3,105.18 | -5,397.08 |
| Free Cash Flow | 179.56 | -74.68 | -698.81 | 315.68 | -3,281.09 | -1,280.79 | -2,226.12 | -3,869.19 | -6,725 | -11,688.65 |
| WACC | ||||||||||
| PV LFCF | -1,189.44 | -1,919.90 | -3,098.96 | -5,002.10 | -8,074 | |||||
| SUM PV LFCF | -19,284.39 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.68 |
| Free cash flow (t + 1) | -11,922.42 |
| Terminal Value | -209,901.76 |
| Present Value of Terminal Value | -144,990.93 |
Intrinsic Value
| Enterprise Value | -164,275.33 |
|---|---|
| Net Debt | 2,399.50 |
| Equity Value | -166,674.83 |
| Shares Outstanding | 223.85 |
| Equity Value Per Share | -744.59 |