Discounted Cash Flow (DCF) Analysis Unlevered

Futu Holdings Limited (FUTU)

$40.4

-0.79 (-1.92%)
All numbers are in Millions, Currency in USD
Stock DCF: 158,797.69 | 40.4 | 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 202.56561.75779.852,614.875,909.2614,439.8535,285.1886,222.80210,693.86514,851.11
Revenue (%)
EBITDA 27.56304.75333.291,715.193,682.326,887.8116,831.0441,128.30100,501.04245,584.13
EBITDA (%)
EBIT 23.26296.42267.191,635.413,562.196,392.0915,619.7038,168.2793,267.90227,909.26
EBIT (%)
Depreciation 4.308.3366.1079.78120.13495.721,211.342,960.037,233.1417,674.87
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 393.92292.48489.221,485.404,555.1012,798.3331,273.9676,420.99186,742.19456,322.86
Total Cash (%)
Account Receivables 394.51771.491,794.348,077.0310,447.7930,262.4173,949.16180,702.02441,563.101,079,002.74
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 1,014.64923.281,484.764,863.3467,192.5062,920.53153,752.48375,709.27918,082.452,243,424.47
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 $ 40.4
Beta 0.446
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 4.871
Total Debt 6,617.98
Total Equity 5,236.17
Total Capital 11,854.16
Debt Weighting 55.83
Equity Weighting 44.17
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 202.56561.75779.852,614.875,909.2614,439.8535,285.1886,222.80210,693.86514,851.11
EBITDA 27.56304.75333.291,715.193,682.326,887.8116,831.0441,128.30100,501.04245,584.13
EBIT 23.26296.42267.191,635.413,562.196,392.0915,619.7038,168.2793,267.90227,909.26
Tax Rate 339.85%31.02%7.19%8.62%11.78%79.69%79.69%79.69%79.69%79.69%
EBIAT -55.78204.47247.981,494.373,142.731,298.203,172.287,751.7718,942.2146,287.15
Depreciation 4.308.3366.1079.78120.13495.721,211.342,960.037,233.1417,674.87
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 --91.36561.493,378.5862,329.16-4,271.9790,831.95221,956.79542,373.171,325,342.03
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 -58.89-274.33-265.62-1,374.6263,150.81-23,016.9549,758.96121,590.91297,119.31726,040.16
WACC
PV UFCF -21,929.2645,167.25105,154.93244,813.63569,956.27
SUM PV UFCF 943,162.82

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.96
Free cash flow (t + 1) 740,560.96
Terminal Value 25,018,951.41
Present Value of Terminal Value 19,640,384.85

Intrinsic Value

Enterprise Value 20,583,547.67
Net Debt 2,062.89
Equity Value 20,581,484.78
Shares Outstanding 129.61
Equity Value Per Share 158,797.69