Discounted Cash Flow (DCF) Analysis Unlevered

The Goldman Sachs Group, Inc. (GS)

$327.89

-2.35 (-0.71%)

All numbers are in Millions, Currency in USD

Stock DCF: 1,319.94 | 327.89 | undervalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	33,416	33,294	40,419	59,339	47,365	53,009.23	59,326.06	66,395.63	74,307.64	83,162.48
Revenue (%)
EBITDA	29,721	12,287	14,381	29,059	37,287	30,652.12	34,304.77	38,392.69	42,967.74	48,087.98
EBITDA (%)
EBIT	28,393	10,583	12,479	27,044	34,832	28,279.77	31,649.72	35,421.25	39,642.21	44,366.16
EBIT (%)
Depreciation	1,328	1,704	1,902	2,015	2,455	2,372.35	2,655.05	2,971.44	3,325.53	3,721.82
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	130,000	133,000	156,526	261,025	597,571	305,045.10	341,395.69	382,077.98	427,608.17	478,563.94
Total Cash (%)
Account Receivables	496,000	75,000	121,000	161,000	135,448	272,068.58	304,489.54	340,773.92	381,382.13	426,829.39
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	180,000	175,000	191,000	252,000	262,000	266,600.82	298,370.21	333,925.39	373,717.49	418,251.40
Accounts Payable (%)
Capital Expenditure	-7,982	-8,443	-6,309	-4,667	-3,748	-8,548.55	-9,567.24	-10,707.31	-11,983.25	-13,411.23
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 327.89
Beta	1.397
Diluted Shares Outstanding	352.30
Cost of Debt
Tax Rate	16.50
After-tax Cost of Debt	5.79%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.033
Total Debt	308,000
Total Equity	115,515.65
Total Capital	423,515.65
Debt Weighting	72.72
Equity Weighting	27.28
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	33,416	33,294	40,419	59,339	47,365	53,009.23	59,326.06	66,395.63	74,307.64	83,162.48
EBITDA	29,721	12,287	14,381	29,059	37,287	30,652.12	34,304.77	38,392.69	42,967.74	48,087.98
EBIT	28,393	10,583	12,479	27,044	34,832	28,279.77	31,649.72	35,421.25	39,642.21	44,366.16
Tax Rate	16.20%	20.00%	24.20%	20.00%	16.50%	19.38%	19.38%	19.38%	19.38%	19.38%
EBIAT	23,793.16	8,466	9,459	21,635	29,085.21	22,798.90	25,515.73	28,556.30	31,959.20	35,767.61
Depreciation	1,328	1,704	1,902	2,015	2,455	2,372.35	2,655.05	2,971.44	3,325.53	3,721.82
Accounts Receivable	-	421,000	-46,000	-40,000	25,552	-136,620.58	-32,420.95	-36,284.39	-40,608.20	-45,447.26
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	-5,000	16,000	61,000	10,000	4,600.82	31,769.39	35,555.18	39,792.10	44,533.91
Capital Expenditure	-7,982	-8,443	-6,309	-4,667	-3,748	-8,548.55	-9,567.24	-10,707.31	-11,983.25	-13,411.23
UFCF	17,139.16	417,727	-24,948	39,983	63,344.21	-115,397.06	17,951.98	20,091.22	22,485.38	25,164.84
WACC
PV UFCF						-107,626.43	15,615.67	16,299.67	17,013.63	17,758.87
SUM PV UFCF										-40,938.59

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.22
Free cash flow (t + 1)	25,668.14
Terminal Value	491,726.86
Present Value of Terminal Value	347,012.34

Intrinsic Value

Enterprise Value	306,073.75
Net Debt	-158,942
Equity Value	465,015.75
Shares Outstanding	352.30
Equity Value Per Share	1,319.94