Discounted Cash Flow (DCF) Analysis Unlevered

Sohu.com Limited (SOHU)

$16.07

-0.19 (-1.17%)
All numbers are in Millions, Currency in USD
Stock DCF: 47.95 | 16.07 | 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 1,860.961,883.031,845.45749.89835.58733.74644.32565.79496.84436.29
Revenue (%)
EBITDA -53.29-3.5928.6493.201,033.48197.54173.46152.32133.76117.46
EBITDA (%)
EBIT -277.29-155.98-103.7953.35997.52143.36125.88110.5497.0785.24
EBIT (%)
Depreciation 224152.39132.4339.8535.9654.1847.5841.7836.6932.22
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 2,183.031,861.111,621.96317.801,398.29753.93662.05581.36510.51448.29
Total Cash (%)
Account Receivables 322.23339.28313.9687.5282.55108.4495.2383.6273.4364.48
Account Receivables (%)
Inventories -12.734.193.383.773.312.912.552.241.97
Inventories (%)
Accounts Payable 288.39295.95253.40107.6187.45102.3789.9078.9469.3260.87
Accounts Payable (%)
Capital Expenditure -145.32-199.38-96.76-33.78-42.21-48.71-42.78-37.56-32.99-28.97
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 16.07
Beta 1.463
Diluted Shares Outstanding 39.25
Cost of Debt
Tax Rate -605.14
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.708
Total Debt -
Total Equity 630.73
Total Capital 630.73
Debt Weighting 0.00
Equity Weighting 100.00
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 1,860.961,883.031,845.45749.89835.58733.74644.32565.79496.84436.29
EBITDA -53.29-3.5928.6493.201,033.48197.54173.46152.32133.76117.46
EBIT -277.29-155.98-103.7953.35997.52143.36125.88110.5497.0785.24
Tax Rate -181.69%-98.14%785.56%189.05%-605.14%17.93%17.93%17.93%17.93%17.93%
EBIAT -781.11-309.06711.54-47.517,033.87117.65103.3190.7279.6769.96
Depreciation 224152.39132.4339.8535.9654.1847.5841.7836.6932.22
Accounts Receivable --17.0625.32226.444.97-25.8913.2211.6110.198.95
Inventories --8.540.80-0.390.460.400.350.310.27
Accounts Payable -7.56-42.55-145.79-20.1614.93-12.48-10.96-9.62-8.45
Capital Expenditure -145.32-199.38-96.76-33.78-42.21-48.71-42.78-37.56-32.99-28.97
UFCF -702.43-365.54738.5340.027,012.04112.62109.2695.9584.2573.98
WACC
PV UFCF 101.7289.1470.7156.0844.48
SUM PV UFCF 362.14

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.71
Free cash flow (t + 1) 75.46
Terminal Value 866.41
Present Value of Terminal Value 520.94

Intrinsic Value

Enterprise Value 883.08
Net Debt -998.95
Equity Value 1,882.03
Shares Outstanding 39.25
Equity Value Per Share 47.95