Discounted Cash Flow (DCF) Analysis Levered

Zillow Group, Inc. (Z)

$46.12

-0.39 (-0.84%)
All numbers are in Millions, Currency in USD
Stock DCF: 174.61 | 46.12 | 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 1,333.552,742.843,339.828,147.381,9582,914.594,338.546,458.179,613.3514,310.02
Revenue (%)
Operating Cash Flow 3.85-612.17424.20-3,176.694,5041,059.231,576.722,347.043,493.715,200.58
Operating Cash Flow (%)
Capital Expenditure -78.53-86.64-108.52-104.40-115-113.39-168.78-251.24-373.99-556.71
Capital Expenditure (%)
Free Cash Flow -74.68-698.81315.68-3,281.094,389945.841,407.942,095.803,119.714,643.87

Weighted Average Cost Of Capital

Share price $ 46.12
Beta 1.713
Diluted Shares Outstanding 242.16
Cost of Debt
Tax Rate -3.53
After-tax Cost of Debt 1.91%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.836
Total Debt 1,830
Total Equity 11,168.56
Total Capital 12,998.56
Debt Weighting 14.08
Equity Weighting 85.92
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 1,333.552,742.843,339.828,147.381,9582,914.594,338.546,458.179,613.3514,310.02
Operating Cash Flow 3.85-612.17424.20-3,176.694,5041,059.231,576.722,347.043,493.715,200.58
Capital Expenditure -78.53-86.64-108.52-104.40-115-113.39-168.78-251.24-373.99-556.71
Free Cash Flow -74.68-698.81315.68-3,281.094,389945.841,407.942,095.803,119.714,643.87
WACC
PV LFCF 856.431,154.331,555.862,097.052,826.50
SUM PV LFCF 8,490.17

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.44
Free cash flow (t + 1) 4,736.75
Terminal Value 56,122.63
Present Value of Terminal Value 34,159.07

Intrinsic Value

Enterprise Value 42,649.24
Net Debt 364
Equity Value 42,285.24
Shares Outstanding 242.16
Equity Value Per Share 174.61