Discounted Cash Flow (DCF) Analysis Unlevered

Alphabet Inc. (GOOG)

$ 2856.12

-78.23 (-2.67%)

Stock DCF: 3,662.18 | 2856.12 | undervalue

Operating Data

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	90,272	110,855	136,819	161,857	182,527	217,797.29	259,882.96	310,100.99	370,022.82	441,523.53
Revenue (%)
EBITDA	30,418	24,393	44,062	51,506	61,914	66,927.94	79,860.65	95,292.38	113,706.04	135,677.82
EBITDA (%)
EBIT	24,274	17,478	35,027	39,725	48,217	51,930.28	61,964.93	73,938.62	88,226.02	105,274.22
EBIT (%)
Depreciation	6,144	6,915	9,035	11,781	13,697	14,997.67	17,895.71	21,353.76	25,480.02	30,403.61
Depreciation (%)

Balance Sheet Data

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Total Cash	86,333	101,871	109,140	119,675	136,694	181,264.11	216,290.37	258,084.86	307,955.43	367,462.66
Total Cash (%)
Account Receivables	14,232	18,705	21,193	27,492	31,384	35,853.10	42,781.11	51,047.85	60,911.99	72,682.21
Account Receivables (%)
Inventories	268	749	1,107	999	728	1,218.66	1,454.15	1,735.14	2,070.42	2,470.50
Inventories (%)
Accounts Payable	2,041	3,137	4,378	5,561	5,589	6,441.74	7,686.49	9,171.78	10,944.07	13,058.83
Accounts Payable (%)
Capital Expenditure	-10,212	-13,184	-25,139	-23,548	-22,281	-29,766.36	-35,518.21	-42,381.51	-50,571.02	-60,343.02
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 2,856.12
Beta	1.044
Diluted Shares Outstanding	687.03
Cost of Debt
Tax Rate	16.25
After-tax Cost of Debt	0.42%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.408
Total Debt	26,772
Total Equity	1,962,234.41
Total Capital	1,989,006.41
Debt Weighting	1.35
Equity Weighting	98.65
Wacc

Build Up Free Cash

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	90,272	110,855	136,819	161,857	182,527	217,797.29	259,882.96	310,100.99	370,022.82	441,523.53
EBITDA	30,418	24,393	44,062	51,506	61,914	66,927.94	79,860.65	95,292.38	113,706.04	135,677.82
EBIT	24,274	17,478	35,027	39,725	48,217	51,930.28	61,964.93	73,938.62	88,226.02	105,274.22
Tax Rate	19.35%	53.44%	11.96%	13.33%	16.25%	22.87%	22.87%	22.87%	22.87%	22.87%
EBIAT	19,578.01	8,138.36	30,836.36	34,429.67	40,382.06	40,056.35	47,796.57	57,032.46	68,053.03	81,203.14
Depreciation	6,144	6,915	9,035	11,781	13,697	14,997.67	17,895.71	21,353.76	25,480.02	30,403.61
Accounts Receivable	-	-4,473	-2,488	-6,299	-3,892	-4,469.10	-6,928.01	-8,266.73	-9,864.14	-11,770.22
Inventories	-	-481	-358	108	271	-490.66	-235.49	-280.99	-335.29	-400.07
Accounts Payable	-	1,096	1,241	1,183	28	852.74	1,244.76	1,485.29	1,772.29	2,114.76
Capital Expenditure	-10,212	-13,184	-25,139	-23,548	-22,281	-29,766.36	-35,518.21	-42,381.51	-50,571.02	-60,343.02
UFCF	15,510.01	-1,988.64	13,127.36	17,654.67	28,205.06	21,180.64	24,255.34	28,942.28	34,534.89	41,208.18
WACC
PV UFCF						19,919.72	21,453.38	24,074.95	27,016.86	30,318.27
SUM PV UFCF										122,783.17

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.33
Free cash flow (t + 1)	43,268.59
Terminal Value	3,253,277.41
Present Value of Terminal Value	2,393,547.37

Intrinsic Value

Enterprise Value	2,516,330.54
Net Debt	307
Equity Value	2,516,023.54
Shares Outstanding	687.03
Equity Value Per Share	3,662.18