Discounted Cash Flow (DCF) Analysis Unlevered

Roku, Inc. (ROKU)

$56.08

-0.43 (-0.76%)
All numbers are in Millions, Currency in USD
Stock DCF: -146.22 | 56.08 | overvalue

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 512.76742.511,128.921,778.392,764.584,214.826,425.839,796.6814,935.8122,770.80
Revenue (%)
EBITDA -56.25-0.60-42.8872.32313.214.627.0410.7316.3624.94
EBITDA (%)
EBIT -61.58-8.99-58.55-15.02239.57-89.23-136.05-207.41-316.22-482.10
EBIT (%)
Depreciation 5.348.3915.6787.3473.6593.85143.08218.14332.58507.04
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 177.25197.71515.481,092.812,146.042,073.123,160.644,818.647,346.3911,200.15
Total Cash (%)
Account Receivables 120.55183.08332.67523.85752.391,132.161,726.072,631.534,011.986,116.58
Account Receivables (%)
Inventories 32.7435.5949.7153.9050.28172.22262.56400.30610.29930.43
Inventories (%)
Accounts Payable 56.4156.58115.23112.31124.92334.34509.73777.121,184.781,806.29
Accounts Payable (%)
Capital Expenditure -9.23-18.33-84.61-82.38-40.04-150.41-229.32-349.61-533.01-812.62
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 56.08
Beta 1.654
Diluted Shares Outstanding 141.67
Cost of Debt
Tax Rate -2.45
After-tax Cost of Debt 0.57%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.496
Total Debt 521.71
Total Equity 7,944.74
Total Capital 8,466.45
Debt Weighting 6.16
Equity Weighting 93.84
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 512.76742.511,128.921,778.392,764.584,214.826,425.839,796.6814,935.8122,770.80
EBITDA -56.25-0.60-42.8872.32313.214.627.0410.7316.3624.94
EBIT -61.58-8.99-58.55-15.02239.57-89.23-136.05-207.41-316.22-482.10
Tax Rate -0.50%5.10%1.61%5.12%-2.45%1.78%1.78%1.78%1.78%1.78%
EBIAT -61.89-8.53-57.61-14.25245.44-87.65-133.63-203.73-310.60-473.53
Depreciation 5.348.3915.6787.3473.6593.85143.08218.14332.58507.04
Accounts Receivable --62.52-149.60-191.18-228.54-379.77-593.91-905.46-1,380.45-2,104.60
Inventories --2.85-14.13-4.183.62-121.94-90.34-137.74-209.99-320.14
Accounts Payable -0.1658.65-2.9112.61209.42175.39267.39407.66621.51
Capital Expenditure -9.23-18.33-84.61-82.38-40.04-150.41-229.32-349.61-533.01-812.62
UFCF -65.78-83.67-231.62-207.5666.73-436.51-728.73-1,111-1,693.81-2,582.34
WACC
PV UFCF -393.89-593.37-816.32-1,123.03-1,544.98
SUM PV UFCF -4,471.60

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.82
Free cash flow (t + 1) -2,633.99
Terminal Value -29,863.84
Present Value of Terminal Value -17,867.13

Intrinsic Value

Enterprise Value -22,338.73
Net Debt -1,624.34
Equity Value -20,714.39
Shares Outstanding 141.67
Equity Value Per Share -146.22