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	40,653	55,838	70,697	85,965	117,929	154,116.28	201,407.86	263,211.16	343,979.21	449,531.46
Revenue (%)
EBITDA	23,625	29,685	30,573	40,714	55,712	76,788.36	100,351.36	131,144.83	171,387.47	223,978.83
EBITDA (%)
EBIT	20,600	25,370	24,832	33,852	47,745	65,067.08	85,033.34	111,126.37	145,226.21	189,789.81
EBIT (%)
Depreciation	3,025	4,315	5,741	6,862	7,967	11,721.28	15,318.03	20,018.46	26,161.26	34,189.01
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	41,711	41,114	54,855	61,954	47,998	112,996.42	147,670.10	192,983.63	252,201.91	329,591.70
Total Cash (%)
Account Receivables	5,832	7,587	9,518	11,335	14,039	20,493.35	26,781.86	35,000.05	45,740.04	59,775.67
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	380	820	1,363	1,331	4,083	2,879.44	3,763.02	4,917.72	6,426.76	8,398.85
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	40,653	55,838	70,697	85,965	117,929	154,116.28	201,407.86	263,211.16	343,979.21	449,531.46
EBITDA	23,625	29,685	30,573	40,714	55,712	76,788.36	100,351.36	131,144.83	171,387.47	223,978.83
EBIT	20,600	25,370	24,832	33,852	47,745	65,067.08	85,033.34	111,126.37	145,226.21	189,789.81
Tax Rate	22.63%	12.81%	25.50%	12.16%	16.74%	17.97%	17.97%	17.97%	17.97%	17.97%
EBIAT	15,938.64	22,119.85	18,499.90	29,736.30	39,753.84	53,376.63	69,755.60	91,160.56	119,133.76	155,690.73
Depreciation	3,025	4,315	5,741	6,862	7,967	11,721.28	15,318.03	20,018.46	26,161.26	34,189.01
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	-	440	543	-32	2,752	-1,203.56	883.58	1,154.71	1,509.03	1,972.09
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	12,230.64	11,204.85	7,750.90	19,634.30	29,201.84	27,796.98	40,929.51	53,488.99	69,902.44	91,352.45
WACC
PV UFCF						25,385.37	34,135.66	40,740.10	48,622.34	58,029.61
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