Discounted Cash Flow (DCF) Analysis Unlevered
Gaotu Techedu Inc. (GOTU)
$3.7
-0.45 (-10.84%)
All numbers are in Millions, Currency in USD
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 | 15.61 | 63.57 | 338.38 | 1,139.96 | 1,049.88 | 3,591.76 | 12,287.83 | 42,038.09 | 143,817.17 | 492,015.25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | -13.86 | 4.24 | 40.90 | -219.25 | -471.99 | -964.24 | -3,298.78 | -11,285.52 | -38,609.09 | -132,086.17 |
| EBITDA (%) | ||||||||||
| EBIT | -14.65 | 3.56 | 38.97 | -228.41 | -490 | -1,030.35 | -3,524.95 | -12,059.27 | -41,256.17 | -141,142.14 |
| EBIT (%) | ||||||||||
| Depreciation | 0.79 | 0.67 | 1.93 | 9.15 | 18.01 | 66.11 | 226.17 | 773.75 | 2,647.08 | 9,055.96 |
| 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 | 4.36 | 37 | 247.59 | 1,229.84 | 560.47 | 2,302.94 | 7,878.62 | 26,953.68 | 92,211.67 | 315,466.82 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 3.26 | 4.01 | 11.29 | 9.48 | 82.37 | 281.81 | 964.10 | 3,298.29 | 11,283.83 | 38,603.31 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | 7.69 | 2.50 | 16.39 | 56.06 | 191.78 | 656.10 | 2,244.60 |
| Inventories (%) | ||||||||||
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -0.06 | -1.94 | -9.80 | -45.45 | -43.57 | -103.93 | -355.55 | -1,216.37 | -4,161.35 | -14,236.47 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 3.7 |
|---|---|
| Beta | -1.124 |
| Diluted Shares Outstanding | 256.19 |
| Cost of Debt | |
| Tax Rate | -1.35 |
| After-tax Cost of Debt | -% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | -1.774 |
| Total Debt | 56.97 |
| Total Equity | 947.89 |
| Total Capital | 1,004.86 |
| Debt Weighting | 5.67 |
| Equity Weighting | 94.33 |
| 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 | 15.61 | 63.57 | 338.38 | 1,139.96 | 1,049.88 | 3,591.76 | 12,287.83 | 42,038.09 | 143,817.17 | 492,015.25 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | -13.86 | 4.24 | 40.90 | -219.25 | -471.99 | -964.24 | -3,298.78 | -11,285.52 | -38,609.09 | -132,086.17 |
| EBIT | -14.65 | 3.56 | 38.97 | -228.41 | -490 | -1,030.35 | -3,524.95 | -12,059.27 | -41,256.17 | -141,142.14 |
| Tax Rate | 4.82% | 8.16% | 6.44% | 2.43% | -1.35% | 4.10% | 4.10% | 4.10% | 4.10% | 4.10% |
| EBIAT | -13.95 | 3.27 | 36.46 | -222.86 | -496.60 | -988.09 | -3,380.39 | -11,564.70 | -39,564.17 | -135,353.63 |
| Depreciation | 0.79 | 0.67 | 1.93 | 9.15 | 18.01 | 66.11 | 226.17 | 773.75 | 2,647.08 | 9,055.96 |
| Accounts Receivable | - | -0.75 | -7.28 | 1.81 | -72.90 | -199.43 | -682.29 | -2,334.19 | -7,985.54 | -27,319.47 |
| Inventories | - | - | - | - | 5.20 | -13.89 | -39.67 | -135.72 | -464.32 | -1,588.50 |
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure | -0.06 | -1.94 | -9.80 | -45.45 | -43.57 | -103.93 | -355.55 | -1,216.37 | -4,161.35 | -14,236.47 |
| UFCF | -13.22 | 1.26 | 21.31 | -257.34 | -589.86 | -1,239.24 | -4,231.73 | -14,477.24 | -49,528.31 | -169,442.11 |
| WACC | ||||||||||
| PV UFCF | - | - | - | - | - | |||||
| SUM PV UFCF | - |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | - |
| Free cash flow (t + 1) | -172,830.95 |
| Terminal Value | - |
| Present Value of Terminal Value | - |
Intrinsic Value
| Enterprise Value | - |
|---|---|
| Net Debt | -59.66 |
| Equity Value | - |
| Shares Outstanding | 256.19 |
| Equity Value Per Share | - |