Discounted Cash Flow (DCF) Analysis Unlevered

AppLovin Corporation (APP)

$33.55

-2.77 (-7.63%)
All numbers are in Millions, Currency in USD
Stock DCF: 2,514.43 | 33.55 | undervalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 994.101,451.092,793.104,726.677,998.7813,536.0522,906.5838,764
Revenue (%)
EBITDA 292.99197.86580.651,006.741,703.682,883.074,878.938,256.43
EBITDA (%)
EBIT 200.19-57.09149.59339.68574.83972.761,646.162,785.74
EBIT (%)
Depreciation 92.81254.95431.06667.071,128.851,910.323,232.765,470.69
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 396.25317.241,520.501,830.163,097.115,241.138,869.3815,009.34
Total Cash (%)
Account Receivables 161.35296.96514.52868.391,469.542,486.864,208.427,121.76
Account Receivables (%)
Inventories --------
Inventories (%)
Accounts Payable 70.52147.27258.22417.34706.251,195.152,022.523,422.63
Accounts Payable (%)
Capital Expenditure -3.36-3.24-5.46-11.92-20.17-34.13-57.76-97.75
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 33.55
Beta 0.000
Diluted Shares Outstanding 324.10
Cost of Debt
Tax Rate 23.46
After-tax Cost of Debt 2.39%
Risk-Free Rate
Market Risk Premium
Cost of Equity 2.791
Total Debt 3,308.53
Total Equity 10,873.64
Total Capital 14,182.18
Debt Weighting 23.33
Equity Weighting 76.67
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 994.101,451.092,793.104,726.677,998.7813,536.0522,906.5838,764
EBITDA 292.99197.86580.651,006.741,703.682,883.074,878.938,256.43
EBIT 200.19-57.09149.59339.68574.83972.761,646.162,785.74
Tax Rate 5.70%7.75%23.46%12.30%12.30%12.30%12.30%12.30%
EBIAT 188.78-52.66114.49297.89504.10853.071,443.622,442.99
Depreciation 92.81254.95431.06667.071,128.851,910.323,232.765,470.69
Accounts Receivable --135.62-217.56-353.87-601.16-1,017.31-1,721.56-2,913.34
Inventories --------
Accounts Payable -76.75110.95159.12288.91488.91827.361,400.12
Capital Expenditure -3.36-3.24-5.46-11.92-20.17-34.13-57.76-97.75
UFCF 278.23140.18433.49758.281,300.542,200.853,724.426,302.71
WACC
PV UFCF 778.751,300.542,142.993,531.165,818.56
SUM PV UFCF 12,867.76

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 2.70
Free cash flow (t + 1) 6,428.76
Terminal Value 918,394.27
Present Value of Terminal Value 803,853.57

Intrinsic Value

Enterprise Value 816,721.34
Net Debt 1,788.03
Equity Value 814,933.31
Shares Outstanding 324.10
Equity Value Per Share 2,514.43