Discounted Cash Flow (DCF) Analysis Unlevered

Gaotu Techedu Inc. (GOTU)

$3.7

-0.45 (-10.84%)
All numbers are in Millions, Currency in USD
Stock DCF: - | 3.7 | 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 15.6163.57338.381,139.961,049.883,591.7612,287.8342,038.09143,817.17492,015.25
Revenue (%)
EBITDA -13.864.2440.90-219.25-471.99-964.24-3,298.78-11,285.52-38,609.09-132,086.17
EBITDA (%)
EBIT -14.653.5638.97-228.41-490-1,030.35-3,524.95-12,059.27-41,256.17-141,142.14
EBIT (%)
Depreciation 0.790.671.939.1518.0166.11226.17773.752,647.089,055.96
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 4.3637247.591,229.84560.472,302.947,878.6226,953.6892,211.67315,466.82
Total Cash (%)
Account Receivables 3.264.0111.299.4882.37281.81964.103,298.2911,283.8338,603.31
Account Receivables (%)
Inventories ---7.692.5016.3956.06191.78656.102,244.60
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 15.6163.57338.381,139.961,049.883,591.7612,287.8342,038.09143,817.17492,015.25
EBITDA -13.864.2440.90-219.25-471.99-964.24-3,298.78-11,285.52-38,609.09-132,086.17
EBIT -14.653.5638.97-228.41-490-1,030.35-3,524.95-12,059.27-41,256.17-141,142.14
Tax Rate 4.82%8.16%6.44%2.43%-1.35%4.10%4.10%4.10%4.10%4.10%
EBIAT -13.953.2736.46-222.86-496.60-988.09-3,380.39-11,564.70-39,564.17-135,353.63
Depreciation 0.790.671.939.1518.0166.11226.17773.752,647.089,055.96
Accounts Receivable --0.75-7.281.81-72.90-199.43-682.29-2,334.19-7,985.54-27,319.47
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 -13.221.2621.31-257.34-589.86-1,239.24-4,231.73-14,477.24-49,528.31-169,442.11
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 -