Discounted Cash Flow (DCF) Analysis Unlevered
AppLovin Corporation (APP)
$33.55
-2.77 (-7.63%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 994.10 | 1,451.09 | 2,793.10 | 4,726.67 | 7,998.78 | 13,536.05 | 22,906.58 | 38,764 |
|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||
| EBITDA | 292.99 | 197.86 | 580.65 | 1,006.74 | 1,703.68 | 2,883.07 | 4,878.93 | 8,256.43 |
| EBITDA (%) | ||||||||
| EBIT | 200.19 | -57.09 | 149.59 | 339.68 | 574.83 | 972.76 | 1,646.16 | 2,785.74 |
| EBIT (%) | ||||||||
| Depreciation | 92.81 | 254.95 | 431.06 | 667.07 | 1,128.85 | 1,910.32 | 3,232.76 | 5,470.69 |
| 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 | 396.25 | 317.24 | 1,520.50 | 1,830.16 | 3,097.11 | 5,241.13 | 8,869.38 | 15,009.34 |
|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||
| Account Receivables | 161.35 | 296.96 | 514.52 | 868.39 | 1,469.54 | 2,486.86 | 4,208.42 | 7,121.76 |
| Account Receivables (%) | ||||||||
| Inventories | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||
| Accounts Payable | 70.52 | 147.27 | 258.22 | 417.34 | 706.25 | 1,195.15 | 2,022.52 | 3,422.63 |
| 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 | 994.10 | 1,451.09 | 2,793.10 | 4,726.67 | 7,998.78 | 13,536.05 | 22,906.58 | 38,764 |
|---|---|---|---|---|---|---|---|---|
| EBITDA | 292.99 | 197.86 | 580.65 | 1,006.74 | 1,703.68 | 2,883.07 | 4,878.93 | 8,256.43 |
| EBIT | 200.19 | -57.09 | 149.59 | 339.68 | 574.83 | 972.76 | 1,646.16 | 2,785.74 |
| Tax Rate | 5.70% | 7.75% | 23.46% | 12.30% | 12.30% | 12.30% | 12.30% | 12.30% |
| EBIAT | 188.78 | -52.66 | 114.49 | 297.89 | 504.10 | 853.07 | 1,443.62 | 2,442.99 |
| Depreciation | 92.81 | 254.95 | 431.06 | 667.07 | 1,128.85 | 1,910.32 | 3,232.76 | 5,470.69 |
| Accounts Receivable | - | -135.62 | -217.56 | -353.87 | -601.16 | -1,017.31 | -1,721.56 | -2,913.34 |
| Inventories | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 76.75 | 110.95 | 159.12 | 288.91 | 488.91 | 827.36 | 1,400.12 |
| Capital Expenditure | -3.36 | -3.24 | -5.46 | -11.92 | -20.17 | -34.13 | -57.76 | -97.75 |
| UFCF | 278.23 | 140.18 | 433.49 | 758.28 | 1,300.54 | 2,200.85 | 3,724.42 | 6,302.71 |
| WACC | ||||||||
| PV UFCF | 778.75 | 1,300.54 | 2,142.99 | 3,531.16 | 5,818.56 | |||
| 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 |