Discounted Cash Flow (DCF) Analysis Unlevered

Meta Platforms, Inc. (META)

$160.68

-8.81 (-5.20%)
All numbers are in Millions, Currency in USD
Stock DCF: 349.37 | 160.68 | 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 40,65355,83870,69785,965117,929154,116.28201,407.86263,211.16343,979.21449,531.46
Revenue (%)
EBITDA 23,62529,68530,57340,71455,71276,788.36100,351.36131,144.83171,387.47223,978.83
EBITDA (%)
EBIT 20,60025,37024,83233,85247,74565,067.0885,033.34111,126.37145,226.21189,789.81
EBIT (%)
Depreciation 3,0254,3155,7416,8627,96711,721.2815,318.0320,018.4626,161.2634,189.01
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 41,71141,11454,85561,95447,998112,996.42147,670.10192,983.63252,201.91329,591.70
Total Cash (%)
Account Receivables 5,8327,5879,51811,33514,03920,493.3526,781.8635,000.0545,740.0459,775.67
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 3808201,3631,3314,0832,879.443,763.024,917.726,426.768,398.85
Accounts Payable (%)
Capital Expenditure -6,733-13,915-15,102-15,115-18,567-29,643.02-38,739.18-50,626.55-66,161.63-86,463.75
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 160.68
Beta 1.376
Diluted Shares Outstanding 2,859
Cost of Debt
Tax Rate 16.74
After-tax Cost of Debt 2.76%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.701
Total Debt 13,873
Total Equity 459,384.12
Total Capital 473,257.12
Debt Weighting 2.93
Equity Weighting 97.07
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 40,65355,83870,69785,965117,929154,116.28201,407.86263,211.16343,979.21449,531.46
EBITDA 23,62529,68530,57340,71455,71276,788.36100,351.36131,144.83171,387.47223,978.83
EBIT 20,60025,37024,83233,85247,74565,067.0885,033.34111,126.37145,226.21189,789.81
Tax Rate 22.63%12.81%25.50%12.16%16.74%17.97%17.97%17.97%17.97%17.97%
EBIAT 15,938.6422,119.8518,499.9029,736.3039,753.8453,376.6369,755.6091,160.56119,133.76155,690.73
Depreciation 3,0254,3155,7416,8627,96711,721.2815,318.0320,018.4626,161.2634,189.01
Accounts Receivable --1,755-1,931-1,817-2,704-6,454.34-6,288.52-8,218.19-10,739.99-14,035.63
Inventories ----------
Accounts Payable -440543-322,752-1,203.56883.581,154.711,509.031,972.09
Capital Expenditure -6,733-13,915-15,102-15,115-18,567-29,643.02-38,739.18-50,626.55-66,161.63-86,463.75
UFCF 12,230.6411,204.857,750.9019,634.3029,201.8427,796.9840,929.5153,488.9969,902.4491,352.45
WACC
PV UFCF 25,385.3734,135.6640,740.1048,622.3458,029.61
SUM PV UFCF 206,913.07

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.50
Free cash flow (t + 1) 93,179.50
Terminal Value 1,242,393.37
Present Value of Terminal Value 789,202.64

Intrinsic Value

Enterprise Value 996,115.71
Net Debt -2,728
Equity Value 998,843.71
Shares Outstanding 2,859
Equity Value Per Share 349.37