Discounted Cash Flow (DCF) Analysis Unlevered

Futu Holdings Limited (FUTU)

$38.1

+0.04 (+0.11%)

All numbers are in Millions, Currency in USD

Stock DCF: 162,394.38 | 38.1 | undervalue

Operating Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	202.56	561.75	779.85	2,614.87	5,909.26	14,439.85	35,285.18	86,222.80	210,693.86	514,851.11
Revenue (%)
EBITDA	27.56	304.75	333.29	1,715.19	3,682.32	6,887.81	16,831.04	41,128.30	100,501.04	245,584.13
EBITDA (%)
EBIT	23.26	296.42	267.19	1,635.41	3,562.19	6,392.09	15,619.70	38,168.27	93,267.90	227,909.26
EBIT (%)
Depreciation	4.30	8.33	66.10	79.78	120.13	495.72	1,211.34	2,960.03	7,233.14	17,674.87
Depreciation (%)

Balance Sheet Data

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Total Cash	393.92	292.48	489.22	1,485.40	4,555.10	12,798.33	31,273.96	76,420.99	186,742.19	456,322.86
Total Cash (%)
Account Receivables	394.51	771.49	1,794.34	8,077.03	10,447.79	30,262.41	73,949.16	180,702.02	441,563.10	1,079,002.74
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	1,014.64	923.28	1,484.76	4,863.34	67,192.50	62,920.53	153,752.48	375,709.27	918,082.45	2,243,424.47
Accounts Payable (%)
Capital Expenditure	-7.41	-18.79	-118.34	-44.65	-70.46	-724.28	-1,769.86	-4,324.82	-10,568.13	-25,824.26
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 38.1
Beta	0.181
Diluted Shares Outstanding	129.61
Cost of Debt
Tax Rate	11.78
After-tax Cost of Debt	5.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity	4.722
Total Debt	6,617.98
Total Equity	4,938.07
Total Capital	11,556.06
Debt Weighting	57.27
Equity Weighting	42.73
Wacc

Build Up Free Cash

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	202.56	561.75	779.85	2,614.87	5,909.26	14,439.85	35,285.18	86,222.80	210,693.86	514,851.11
EBITDA	27.56	304.75	333.29	1,715.19	3,682.32	6,887.81	16,831.04	41,128.30	100,501.04	245,584.13
EBIT	23.26	296.42	267.19	1,635.41	3,562.19	6,392.09	15,619.70	38,168.27	93,267.90	227,909.26
Tax Rate	339.85%	31.02%	7.19%	8.62%	11.78%	79.69%	79.69%	79.69%	79.69%	79.69%
EBIAT	-55.78	204.47	247.98	1,494.37	3,142.73	1,298.20	3,172.28	7,751.77	18,942.21	46,287.15
Depreciation	4.30	8.33	66.10	79.78	120.13	495.72	1,211.34	2,960.03	7,233.14	17,674.87
Accounts Receivable	-	-376.97	-1,022.85	-6,282.69	-2,370.76	-19,814.61	-43,686.75	-106,752.86	-260,861.08	-637,439.64
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	-91.36	561.49	3,378.58	62,329.16	-4,271.97	90,831.95	221,956.79	542,373.17	1,325,342.03
Capital Expenditure	-7.41	-18.79	-118.34	-44.65	-70.46	-724.28	-1,769.86	-4,324.82	-10,568.13	-25,824.26
UFCF	-58.89	-274.33	-265.62	-1,374.62	63,150.81	-23,016.95	49,758.96	121,590.91	297,119.31	726,040.16
WACC
PV UFCF						-21,941.80	45,218.94	105,335.47	245,374.21	571,588.13
SUM PV UFCF										945,574.95

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.90
Free cash flow (t + 1)	740,560.96
Terminal Value	25,536,584.89
Present Value of Terminal Value	20,104,134.26

Intrinsic Value

Enterprise Value	21,049,709.21
Net Debt	2,062.89
Equity Value	21,047,646.32
Shares Outstanding	129.61
Equity Value Per Share	162,394.38